The $150 million Mega Grant award by the U.S. Department of Transportation for the Interstate 10-Calcasieu River Bridge replacement project is in danger of being rescinded.

The Louisiana Department of Transportation received the grant in 2022 as part of the USDOT’s Mega Grant Program that stemmed from the passage of the Bipartisan infrastructure Law of 2021. As a part of the grant’s statutes, the LADOTD committed to providing at least $867 million — a little over half of the cost of the project — in non-federal contribution.

The LADOTD has had difficulties getting the Public Private Partnership (P3) — the partnership between the LADOTD and Calcasieu Bridge Partners that is necessary to execute the project, but has garnered some local and legislative controversy over the tolls that it would create — approved by the State Joint Transportation Committee. This P3 was shot down by the committee in October and was set to expire earlier this month, but was extended to Feb. 1, 2024.

On Wednesday, the USDOT issued a letter —signed by Acting MPDG Program Manager Aubrei Barton — to LADOTD Secretary Eric Kalivoda acknowledging the P3 rejection.

“The Department recognizes the significant safety and economic benefits of this project, and was pleased to see the urgency with which LADOTD was prioritizing this important infrastructure. However, it has come to our attention that recent actions by the Louisiana State Legislature may challenge the ability of LADOTD to deliver the project in a timely manner.”

According to the letter, the LADOTD’s $867 million commitment is one of the reasons the I-10 Calcasieu River Bridge Replacement project was selected for the Mega Grant program. Another primary factor was the project’s timeline that stated construction could begin before Sept. 20, 2025.

Due to the competitive nature of the Mega program and size of the award, “it is important to the Department that available Mega funding be put to use according to the timelines submitted with the application submitted for award,” the letter stated.

To ensure these requirements can be met, the USDOT has asked the LADOTD to meet certain milestones. USDOT is requesting that a proposed plan of finance and revised procurement schedule that would allow for construction to begin by Sept. 30, 2025, and for construction to be completed and operational by 2031 be submitted by the LADOTD by March 2024.

If the two entities are unable to come to terms on a grant agreement by Sept. 30, 2024, USDOT will rescind the $150 million award to make the funding available for other projects.

Kalivoda said in a statement to the American Press that the position of USDOT is not “unexpected nor unreasonable.”

“Every administration, regardless of party, seeks to award grants to projects that can start in the near term to support our economy and improve the quality of life for American citizens.  With the recent 60-day extension of the proposal validity period from Dec. 3, 2023 to Feb. 1, 2024, there is time to further consider entering into a public private partnership with Calcasieu Bridge Partners and still meet the terms stated in the USDOT letter for retaining the $150 million grant.”