The Arkansas State Highway and Transportation Department (AHTD) has withdrawn 56 construction projects scheduled for consideration in its April 21, 2015 bid opening due to continuing uncertainty of Federal-aid reimbursements available from the Federal Highway Trust Fund.
The estimated value of projects withdrawn from the April bid opening is more than $112 million and includes $50 million authorized by the Arkansas Highway Commission for its 2015 highway overlay program. This brings the total number of projects withdrawn from the 2015 bid openings to 61. The estimated construction value of these withdrawn projects is $162 million. An attached list of projects and accompanying map provide additional details and an illustration of the location of all projects withdrawn in 2015.
“Now that we have cancelled our overlay program for this year, there are few areas in the State that are not affected by projects withdrawn from the April bid letting,” said AHTD Director Scott Bennett. “If you stop and think about the economic impact this has – not only on construction jobs, but the lost commerce that results in each local area because construction isn’t taking place – then you begin to understand the trickle-down effect and the urgency of solving this national problem.”
Since December 2014, AHTD has been conducting an evaluation of scheduled Federally-funded projects prior to each bid letting to ensure sufficient State funds are available to fulfill commitments during anticipated reductions or delays in Federal reimbursements. Highway construction projects in Arkansas are initially paid with State funds, and then the State seeks reimbursement from the Federal Highway Trust Fund for the Federal portion of those payments. Without action from Congress, reimbursements from the Federal Highway Trust Fund are expected to be curtailed this summer.
“The reality is that over $160 million has not found its way into our State’s economy this year,” added Bennett. “Meanwhile, our State’s highway infrastructure has suffered severe damage from a harsh winter weather season. The lack of an overlay program is going to make repairing the damage that has occurred even more challenging. As the Federal Highway Trust Fund heads towards the fiscal cliff, we are not only facing reduced and delayed reimbursements later this year, we are also facing the absence of a Federal-aid highway program next year. Congress must act soon to solve this problem by reinvesting in our Nation’s infrastructure.”