Kasich Announces Innovative Funding Plan for Innerbelt Bridge in Cleveland
CLEVELAND (Thursday, August 23, 2012) – Governor John R. Kasich today announced that a first-of-its-kind financing option will eliminate construction delays for the Innerbelt Bridge project, despite the Ohio Department of Transportation’s (ODOT) $1.6 billion budget hole.
ODOT will use a public private partnership option – or P3 – that will allow contractors to finance more than $300 million needed to design and construct the second major phase of the Innerbelt Bridge project in downtown Cleveland. ODOT will then pay the contractor back with payments over a fixed period of time.
“This is going to give a lot of prosperity to Cleveland," said Kasich. "Cleveland is on the move. It is rebuilding. We have to move people and things. If we think outside the box and have the courage to change, which is important for Ohio, we can continue to do very well.”
The announcement was made possible after Ohio became the 30th state in the nation last year to enact legislation permitting ODOT to pursue P3’s. This is the first time ODOT will pursue a P3 in Ohio.
Earlier this year, ODOT launched the Division of Innovative Delivery to explore P3’s to expedite the construction of some of the state’s largest construction projects like the Innerbelt Bridge, and the potential for future projects, which could include:
- The Brent Spence Bridge in Cincinnati
- The Portsmouth Bypass in Scioto County
- An interchange for U.S. Route 36 and SR 37 on I-71 in Delaware County
The division is also exploring options to unlock the revenue potential of the Ohio Turnpike and non-interstate rest areas, in addition to developing a program to generate millions of dollars for the sponsorship and naming rights of certain state-owned assets such as bridges, interchanges and sections of highway.
In January, ODOT announced a $1.6 billion budget hole that forced the department to push back by decades some of the state’s largest construction projects, including the Innerbelt Bridge. Since then, the agency has initiated a complete review of all current and future transportation projects to identify those that could be excellent candidates for P3’s, and has sought to identify additional sources of revenue to aid in the funding of major transportation projects throughout the state.
For more information, contact: Steve Faulkner, ODOT Press Secretary, at 614-644-7101, email@example.com or your local ODOT District Communications Office