Wednesday, May 02, 2007

And what does that mean for North-South I-94?

Atlanta is having a wee bit of a sticker shock over the inflation that has lifted the price of expanding a tollway in just two years.

From the Atlanta Journal-Constitution.

The projected price tag for a major expansion of I-75 and I-575 has reached $4 billion. And counting.

When the Georgia Department of Transportation decided in 2005 to negotiate a project to expand I-75 and I-575 with toll lanes north of Atlanta, it estimated the cost of the public-private project at $1.8 billion, or $2.6 billion with inflation included. It was to be the most expensive Georgia road project in history, by a factor of more than 10.

With record inflation in construction costs and changes to the project, the price has gone up by about $1.4 billion, according to a study by state and federal agencies released Monday.

If the project is still feasible, drivers will likely pay the difference in either taxes or tolls.

Atlanta is projecting a 54% price increase in just two years.

The Wisconsin Department of Transportation has for several years been sitting on a maximum $1.6 billion estimate for reconstructing North-South I-94. WisDOT has a well-deserved really bad reputation for estimating road project costs, as its projects routinely go over estimates by millions of dollars.

The I-94 project isn't a tollway, but the same road construction inflation that hit the Atlanta project will hit the North-South project. Hold on to your wallets, Wisconsin!

2 comments:

Anonymous said...

It's "sticker shock" not "sticker shot".

Gretchen Schuldt said...

Thank you. Fixed.