(The Center Square) — The state Route 1 project began over 20 years ago and is expected to take another seven years to be fully completed. The project’s funding has required a great deal of bonds and taxpayer assistance.
If the Louisiana Transportation Agency’s operating revenues continue fall short of expectations, it might struggle to cover debt service payments on its bonds.
According to the Louisiana Legislative Auditor’s Office, the Louisiana Transportation Authority reported a 29% increase in operating revenue for fiscal year 2024, reaching $6 million — up from $4.6 million in the previous year. However, the revenue was still not enough to cover debt obligations or reimburse the state for payments made on the agency’s behalf under a cooperative agreement with the state.
The initiative involves replacing the sinking state Route 1 highway near Leeville with an 18-mile bridge to combat coastal erosion and flooding that frequently disrupts access to Port Fourchon.
Phase one has been completed entirely and phase two is half complete. Phases three and four have yet to see any construction.
Bond financing has played a pivotal role in advancing the project. In 2013, the agency issued a series of bonds to refinance older debt and fund construction, with subsequent refinancing in 2021 to reduce costs further.
While eleven miles of state Route 1 are complete and operational, funding gaps and rising depreciation highlight the financial strain of maintaining and expanding such an ambitious infrastructure project.
The project will eventually connect Leeville to Golden Meadow and Port Fourchon via 19.3 miles of elevated expressway. Currently under construction, the second phase of the bridge, spanning roughly 9 miles, began in 2022 with an estimated completion in 2027.
The $464 million phase two project, awarded to Primoris Heavy Civil and James Construction Group LLC, will provide a critical link for the oil industry and the region’s residents.
“The LA 1 corridor is a vital roadway for the nation’s energy sector,” said Daniel Gitlin, spokesman for the New Orleans Area and Northshore Department of Transportation and Development. “When the roadway is out of service, it can cost America $550 million in GDP loss. The current highway is low-lying and often flooded by hurricanes, making the new elevated bridge crucial for economic stability and safety.”
The project was broken into two phases to manage funding, with each phase costing millions and spreading the financial burden over time. The total project is expected to exceed $700 million. Bond financing has not been enough to meet all the costs, and toll revenues have fallen short of expectations, further straining the agency’s budget.