Independent Experts Say Alaska’s Remaining ‘Bridge to Nowhere’ Has “Extraordinarily High” Risks;
State Would Need to Share Financial Risks to Build the Proposed Knik Arm Bridge

FOR MORE INFORMATION:

Lois Epstein, 907.748.0448 (cell)

Anchorage, AK – The State of Alaska today issued the Knik Arm Crossing Construction Cost Estimate, developed by The National Constructors Group, a team composed of senior construction managers with no financial interest in the proposed Knik Arm Bridge project.  These experts concluded that “without an equitable risk sharing agreement, the Project will not be economically feasible if proposals are received wherein all risks are passed on to the contractor” (p. 1-20,  http://www.dot.alaska.gov/comm/pressbox/arch_2009/Knik-Arm-Crossing-Report-Executive-Summary.pdf), i.e., if no risks are assumed by the state. 

The cost estimate issued today of $686 million does not include the cost of linking the bridge to Ingra-Gambell streets and thus to the Seward Highway, past and future operating costs for the Knik Arm Bridge and Toll Authority (approximately $44 million spent to date), and several key materials estimates were not independently verified.  Additionally, today’s estimate does not provide a worst-case/best-case cost range, so current uncertainties and unknowns may increase costs substantially.

According to the report, “[t]he design and construction risks for this Project are extraordinarily high” (p. 1-19).  Lois Epstein, Director of the non-profit Alaska Transportation Priorities Project - a transportation watchdog organization - sees that statement as a warning to the state.  “At a time of declining oil revenues and federal funding for transportation, the state should not undertake a project of this scale with its ‘extraordinarily high’ financial risks,” stated Epstein.  “This is particularly true,” she added, “because the transportation merits of this project are so questionable given the state’s current transportation repair needs and the cheaper alternatives available including transit and Glenn Highway operational improvements.” 

The final Environmental Impact Statement for the proposed bridge, released last year, showed that the project will not relieve congestion for travelers from the Mat-Su Borough to Anchorage.  According to the Knik Arm Bridge and Toll Authority’s own consultants, existing commuters from the Mat-Su Borough’s Wasilla and Palmer population centers would travel farther and longer to reach Anchorage if they chose to take the bridge, and would pay an expected $5 toll each way.  New roads, schools, police and fire stations, and other not-yet-built infrastructure near the Point Mackenzie bridge terminus likely would be funded largely by the Borough’s Wasilla and Palmer residents.

The Knik Arm Bridge from Anchorage to an undeveloped portion of the Mat-Su Borough and the Gravina Bridge near Ketchikan received national notoriety as Alaska’s “bridges to nowhere.”  These proposed projects received $229 million and $223 million in federal earmark money, respectively, due to Alaskan Senator Ted Stevens’ and Congressman Don Young’s efforts.  In November 2005, Congress removed the earmarks but gave the state the money.  In September 2007, Alaska Governor Sarah Palin cancelled the Gravina “bridge to nowhere” project, however the proposed Knik Arm “bridge to nowhere” continues to move forward.