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Project Profile: The Louisiana Highway 3241 project, LA 3241: LA 36 To LA 435

The Louisiana Highway 3241 project, LA 3241: LA 36 To LA 435

Caption: Caption: LA 3241: Segments 1 thru 3
Source: Credit to Louisiana Department of Transportation and Development

Project Name LA 3241: LA 36 To LA 435; The Louisiana Highway 3241 project
Location St. Tammany Parish, Louisiana
Project Sponsor / Borrower Louisiana Department of Transportation and Development (LADOTD)
Program Areas Project DeliveryProject FinanceValue Capture TIFIA
Value Capture Techniques Asset Recycling, Utilizes abandoned rail corridor to enhances economic development in surrounding parishes
Mode Highway and Bridge
Description

The project is a one of three segments of a new four-lane, divided highway from I-12 near Lacombe to the southern terminus of LA 21 in Bush. This segment connects LA 36 to LA 435 in Talisheek. The length of this segment is 8.2 miles. This project is being funded by the British Petroleum Deepwater Horizon settlement. A TIFIA loan is allowing LADOTD to accelerate delivery of the project.

Highway 3241 is a three-phase project which will create a four-lane highway from the intersection of Louisiana Highway 40/41 in Bush to Interstate 12 in St. Tammany Parish. The first two phases have already been let for bid and contractors have been secured. The third phase is expected to go out for bid in 2023.

The first phase will be between Highway 40/41 and Louisiana Highway 435. The second phase will be between Highway 435 and Louisiana Highway 36. The third phase will be between Highway 36 and Interstate 12.

The LA 3241 project was originally part of the state's Transportation Infrastructure Model for Economic Development or TIMED program that encompassed 16 projects statewide.

The TIMED program began in 1989 following voter approval of a 4-cent increase to the state's gasoline tax. Louisiana accelerated the program later through the sale of bonds. The LA 3241 project is the 15th TIMED project to move forward.

Cost $62.56 million
Funding Sources TIFIA Loan – $26.9 million
Other Federal funds for pre-construction – $14.3 million
State funds used for pre-construction – $3.6 million
Other Federal funds for construction – $28.5 million
Other State funds for construction – $14.7 million
Act 443 funds used for financing cost – $0.6 million
Project Delivery / Contract Method LA DOTD executed the TIMED Program through an innovative public-private partnership known as LTM.
LA DOTD awarded its program management contract using a competitive, quality-based model.
  • Contractor: James Construction Group, LLC
Private Partner Program managers - Louisiana TIMED Managers (LTM) - Joint venture of Parsons Brinckerhoff, the LPA Group, and Gulf Engineers & Consultants (GEC)
Project Advisors / Consultants Cypress Capital Corporation - financial Lenders USDOT TIFIA
Lenders USDOT TIFIA
Duration / Status Construction commenced in December 2021 and is expected to be completed by May 2023.
TIFIA Credit Assistance Direct Loan of $26.9 million (Credit Agreement Executed in December 17, 2021)
The TIFIA loan will be repaid with Act 443 funds, which derives from a settlement with BP related to the Deepwater Horizon oil spill litigation. Act 443 allocated $689 million to ten LADOTD projects, with $50 million allocated to construction of LA 3241 (multiple segments). Approximately $28 million of the LA 3241 allocation will be used to repay TIFIA and cover administrative expenses for this segment.
Financial Status/Financial Performance The TIFIA loan closed in December 2021. The loan will be drawn from 2022 to 2023 and be repaid from 2023 to 2029.
Innovations
  • This project received one of the first TIFIA loans made by the Build America Bureau through its Rural Projects Initiative, which makes TIFIA financing more accessible to small communities. Under this initiative, the Bureau can offer eligible borrowers in a qualified rural area significant savings over traditional TIFIA loans and other commercial financing products.
  • Utilizing a TIFIA low interest loan, the state can save approximately $50 million in typical inflation costs due to funding delays.
  • The LA 3241 project is the 15th TIMED project to move forward. The project is one of just two remaining as part of the TIMED (Transportation Infrastructure Model for Economic Development) Program, which first began in 1989 and funded a total of 16 projects.
  • Project is critical to the safety of travelers and the economic vitality of the region and provides a major connection and economic growth for I-12 to Northeast St. Tammany Parish and all neighbors, businesses, and communities in between.

Related Links / Articles
Contacts

Buddy Porta is the LA DOTD TIMED program manager
LADOT
1-877-452-3683

LA 3241: Segment 1

LA 3241: Segment 1; La 434 / I-12 Interchange to La 36

Source: Credit to Louisiana Department of Transportation and Development

LA 3241: Segment 1

LA 3241: Segment 2 from La 36 to La 435

Source: Credit to Louisiana Department of Transportation and Development

LA 3241: Segment 1

LA 3241: Segment 3 from LA 435 to LA 40/LA 41

Source: Credit to Louisiana Department of Transportation and Development

LA 3241: Segment 1

Louisiana Gov. John Bel Edwards and other local officials join together for the ceremonial "groundbreaking" of the new Louisiana Highway 3241, on Friday afternoon in Bush.

Source: Credit to Louisiana Department of Transportation and Development

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