Indiana officials have approved a deal with the private company that will finance and build the new section of Interstate 69 between Bloomington and Martinsville.
The Indiana Finance Authority and Indiana Department of Transportation said the agencies have finalized the agreement with private contractor I-69 Development Partners to upgrade a 21-mile stretch of the existing Indiana 37 for the I-69 extension.
Private bonds to finance the project are set for to be sold in June and construction is scheduled to start this year. The new section of I-69 is slated to open by the end of 2016.
Under terms of the contract, the state would make an $80 million "down payment" to the private partner, Isolux Infrastructure, which would pay the $325 million estimated for construction. Once that section of highway is complete, the state starts paying the partner $21.8 million a year for 35 years and the company maintains the highway.
Isolux is working with local contractors E&B Paving of Anderson, Force Construction Co. of Columbus and Gradex Inc. of Indianapolis.
Isolux beat three other consortiums with its proposal.
If the private developer doesn't keep the road open to traffic and up to Indiana Department of Transportation standards, the state could reduce the annual payment.