On Monday, the U.S. Department of Transportation announced its Build America Bureau would provide the Louisiana State Bond Commission with a $86.6 million low-interest loan for infrastructure projects.
The Louisiana Department of Transportation and Development (LADOTD) will use the money to fund the I-49S. Ambassador Caffery/US 90 Interchange near Broussard in Lafayette Parish. The loan is a Transportation Infrastructure Finance and Innovation Act loan, or TIFIA loan, that helps communities reduce the cost of their infrastructure projects.
“This interchange project will enhance safety, improve evacuations during life-threatening weather events, and is part of an overall improvement plan that supports job creation for the region,” said Deputy Transportation Secretary Polly Trottenberg.
The project is the last of four that were part of a transportation financing package approved by the Bureau in August 2021, and funded through a British Petroleum Deepwater Horizon settlement. Approximately 2.4 miles in length, the project includes a new two-lane frontage roads, as well as the construction of interchanges on US 90 at Ambassador Caffery Blvd and at Albertson Parkway.
LADOTD Executive Director Morteza Farajian said the state was able to speed up the process for each individual loan by developing a package of projects for consideration.
“Three of the four projects qualified for reduced interest rates, half the treasury rate, through our Rural Projects Initiative,” Farajian said.
The Build America Bureau was established as a “one-stop-shop” during President Barack Obama’s administration to help states fund infrastructure projects. The Bureau offers low-interest, long-term credit programs, technical assistance and best practices in project planning, financing, delivery and operation. The Bipartisan Infrastructure Law expands the eligibility requirements for the TIFIA credit program and extends maturity of the loans, giving borrowers additional flexibility.