I-10 Calcasieu River Bridge Public-Private Partnership Project for the Louisiana Department of Transportation and Development
SAYCR
Nossaman served as lead outside counsel on the I-10 Calcasieu River Bridge Public-Private Partnership Project for the Louisiana Department of Transportation and Development (LA DOTD) and currently assists with implementation of the project. The project reached financial close in August of 2024. The project includes the design, construction, financing, operations and maintenance of a new six-lane bridge on Interstate 10 crossing the Calcasieu River, development of a new toll system, modification and relocation of existing roadways, and demolition and removal of the existing bridge. This design-build-finance-operate-maintain project has an estimated capital cost of $2.1 billion. The project will connect the towns of Lake Charles and Westlake in Louisiana. Construction of the bridge is targeted to begin in 2026, with opening planned for 2031, serving over 90,000 vehicles daily by 2040. P3 Model used: The project employs a design-build-finance-operate-maintain P3 model--and was awarded by the Louisiana Department of Transportation and Development (LA DOTD) to the Calcasieu Bridge Partners consortium formed by Plenary Americas, Acciona, and Sacyr. The financing includes the issuance of tax-exempt "Private Activity Bonds" (PABs) totaling $1.333 billion. This project will require an investment exceeding $3.37 billion, with construction costs estimated at $2.1 billion. How will project improve the community: The project is a 5.5-mile corridor stretching from near Ryan Street in Lake Charles to the I-210 and I-10 interchange in Westlake. Along with the new bridge and approaches, the project includes the Interstate 10 (I-10) roadways and ramps, the I-10 service roads, and interchanges at PPG Drive, Sampson Street, and North Lakeshore/Ryan Street that connect I-10 to state roads and local streets. Sampson Street will be elevated over the railroad tracks to eliminate blockages from trains. The existing bridge was built in the early 1950s and predates the interstate system. It is narrow, lacks shoulders, and has steep approach grades. Conversely, the new bridge will be lower and not as steep and have more lanes, full shoulders, and roadway lighting. The new bridge will be state-of-the-art and better serve the surrounding community and the greater Lake Charles region. It will connect the towns of Lake Charles and Westlake in Louisiana and ease transportation gridlock, improve commerce, improve the safety of travelers, and create new jobs in the community. Unique and Innovative Project Features: The $2.1 billion Interstate 10 Calcasieu River Bridge megaproject in Lake Charles reached financial close in August 2024 after the Louisiana Department of Transportation and Development (LA DOTD) and Calcasieu Bridge Partners (the consortium formed by Plenary Americas, Acciona, and Sacyr) signed the public-private partnership (P3) agreement in January 2024. The project includes the design, construction, financing, operations and maintenance of a new six-lane bridge on Interstate 10 crossing the Calcasieu River, development of a new toll system, modification and relocation of existing roadways, and demolition and removal of the existing bridge. The Louisiana State Bond Commission approved the sale of private activity bonds (PABs) for the project in a July 2024 meeting. State and federal funding covers $1.2 billion of the project’s overall cost. The remaining costs will be covered through toll revenue. Tolls will not be charged until the new bridge is open to traffic. The state will retain nearly 15 percent of toll revenues after construction, maintenance, and debt service costs are paid. These will be used to lower toll rates, shorten the toll’s 50-year term, or fund future highway transportation infrastructure projects in Southwest Louisiana’s five-parish area. The scope of the project is a 5.5-mile corridor from near Ryan Street in Lake Charles to the I-210 and I-10 interchange in Westlake. Improvements include the new bridge and approaches, interstate roadways and ramps, I-10 service roads, and interchanges at PPG Drive, Sampson Street, and North Lakeshore/Ryan Street that connect I-10 to state roads and local streets. Sampson Street will be elevated over the railroad tracks to eliminate blockages from trains. Preliminary construction activities of the project may begin as early as this year and are anticipated to take approximately seven years to complete. Once construction is finished, Calcasieu Bridge Partners will operate and maintain the new bridge for up to 50 years.