BLOOMINGTON, Ill. — Those who do commerce on the Illinois River received an early Christmas present in December when the Port of New Orleans Board of Commissioners passed a resolution supporting a Public-Private Partnership Pilot Program – or P5 – to facilitate necessary infrastructure improvements on the Mississippi River tributary.

The P5 program for the Illinois River consists of a set of projects to be paid for with federal funds and private bonds. Eight Illinois River locks and dam projects will be assigned to the P5 program for design and construction, including the T.J O’Brien Lock and Controlling Works, Lockport Lock and Brandon Road, Dresden Island, Marseilles, Starved Rock, Peoria and LaGrange locks and dams.

The new approach to funding large waterways infrastructure projects with public-private cost-sharing (which is supported by Section 5014 of the 2014 Water Resources Reform and Development Act of 2014, or WRRDA) could spur waterway renovations that have failed to gain funding from Congress for years. This is according to Scott Sigman, transportation and export infrastructure lead for the Illinois Soybean Assoc. (ISA).

“The interest in public-private partnerships is very high,” Sigman said, adding the ISA had been working with the Port of New Orleans and other industry partners to call attention to the benefits of supporting repairs to the Illinois waterway, along with the potential for the P5 initiative to solve funding concerns. “We as an industry have been examining the implications and trying to understand what these potential new financing structures will look like. We’re very pleased to announce this resolution.”

Capital requirement estimates for Illinois and middle Mississippi River lock and dam repairs under the P5 are set at $500 million-$750 million for each major rehabilitation, and $300 million-$350 million for each lock expansion. Locking and tonnage fees, federal waterways funds and state-issued bonds to the private entity will provide the lion’s share of funding for the projects.

Once a project is completed, the U.S. Army Corps of Engineers will assume regular maintenance of the rehabilitated facility.

“Industry partnerships in collaboration with the (Corps) bring together the resources needed to improve the reliability of the Illinois River’s locks and dams,” Sigman said.

“The transportation projects we are pursuing through the P5 initiative have potential benefits that would be recognized nationwide.”

Efficient transportation has a major impact on farm profitability, noted Paul Rasmussen, an ISA director and farmer from Genoa. “International customers prefer U.S. soybeans for their predictable transit time. With more than 55 percent of Illinois soybeans destined for export, infrastructure improvements are essential to maintaining our international demand,” he said.

A look at the public-private funding provision contained in Section 5014 of WRRDA 2014 shows it authorizes transfer of up to 15 federally authorized projects to non-federal organizations for design, construction, financing and operation. Successful pilot programs will require a non-federal organization capable of overseeing the project; a viable financing mechanism that includes non-federal funding; innovative, cost-effective delivery at reduced federal cost; and both regional and national significance.

The Corps is charged with selecting pilot projects. Flood control, navigation, coastal restoration, ecosystem restoration and recreation-related projects are eligible for P5 approval. In addition to the Illinois River and middle Mississippi River lock and dam P5, other potential P5 initiatives include a Fargo-Moorhead flood control project, port deepening projects and other navigation infrastructure projects.

Section 5014 opportunities include improved river system reliability, accelerated improvement of deteriorating infrastructure and increased local stakeholder control and involvement in critical infrastructure repair.