$2.3 billion project to replace 70-year-old Louisiana bridge moves forward
16 August 2024
A 3D render of the new Calcasieu Bridge in Louisiana, USA. Construction is due to start in 2026. (Image supplied by Acciona)
A consortium of construction companies has reached financial close to design, build, operate and maintain a new bridge over the Calcasieu River, part of the I-10 interstate highway in Louisiana, USA.
Acciona and its partners Plenary Americas and Sacyr form the Calcasieu Bridge Partners (CBP) consortium and will build a replacement to the existing bridge, which is more than 70 years old, before operating and maintaining it for 50 years.
The concession involves a total capital expenditure of $3.4 billion and a construction budget of $2.3 billion.
Acciona and Sacyr each hold a 30% stake in CBP, while Plenary Americas holds 40%. CBP will subcontract the design and construction of the project to a consortium formed by Acciona and Sacyr, each of which will have a 50% share.
Work involves the reconstruction of six lanes of interstate highway, several additional structures, the implementation of a free-flow toll system, and the demolition of the existing bridge, which opened in 1952.
The original bridge was designed to last 50 years and handle a traffic load of 37,000 vehicles per day. Today, the average daily crossings are reported to be over 90,000.
Construction work on the new bridge is expected to start in 2026, with completion scheduled for 2031.
The State of Louisiana will contribute almost $1.2 billion during construction, which will be paid in line with certain construction milestones. The long-term financing for the project includes a $1.3 billion issue of tax-exempt private activity bonds (PABs) issued by JP Morgan Securities and Wells Fargo Bank in four different tranches, maturing between 2054 and 2066.
The remaining private capital will be injected at the end of the construction period and is backed by letters of credit provided by Acciona and its partners.
