Dive Brief:
- Planning for a $1 billion, 213-mile interstate highway that will connect Norfolk, VA, and Raleigh, NC — and that officials hope will boost the eastern North Carolina economy — is underway, according to the Virginian-Pilot.
- State officials said that two existing highways would be assimilated into the new interstate, which will create "an unobstructed route" between the Port of Virginia and Raleigh businesses, as well as the city's Research Triangle.
- Congress approved the future Interstate 87 last year, and the project has local, state and federal political and community support, but there is no timeline for construction or a funding plan for what is estimated to be a 20-year project. According to the Federal Highway Administration, the federal government pays for 90% of interstate construction projects.
Dive Insight:
State officials said the new interstate would provide a much-needed southwest route from the port and, for the first time, open up an economic future for North Carolina cities that have not had access to a port route or major freight corridor. The VA-NC interstate highway also has an advantage — 90% federal funding. However, not every project has such a clear path to financing. In fact, it's hard to find a state not struggling with how to come up with the money to perform even basic infrastructure repairs.
Last week, the Illinois Department of Transportation announced its $11.2 billion, six-year plan to repair the state's roads, highways and bridges. State officials said the federal FAST Act will end up contributing more than $800 million over the life of the project but that a predicted revenue shortfall means "all stakeholders" in the project are going to have to work together to come up with a "long-term, sustainable solution."
Some cities, like San Diego, have turned to taxes to fund their public works needs. Voters just last week approved Proposition H, which will raise $3 billion over 25 years, for infrastructure projects through pension savings, sales tax growth beyond inflation, as well as a portion of property and hotel tax growth. City officials have said that the masure is a way to raise the necessary funds without raising taxes.
Many states are also harnessing the power of public-private partnerships (P3s) to leverage their available funds with the help of financing from the private sector. Skanska's "largest project ever," the $4 billion LaGuardia airport renovation is a P3, as is the Skanska-led, $2.3 billion, 21-mile Interstate 4 overhaul in Orlando, FL.
