The Alabama Department of Transportation, along with the chairmen of the Eastern Shore Metropolitan Planning Association and the Mobile Metropolitan Planning Association, announced today that they will spend 60 days studying cost-saving measures for construction of the Mobile River Bridge and Bayway to minimize the effects of inflation.

The project is on temporary hold pending review.

The estimated cost of the Mobile River Bridge and Bayway project ranges from $2.8 billion to $3.5 billion due to rising construction, materials and labor costs since 2020, according to the department.

“We all had hoped that the next important step would be to set a timeline to move to construction in 2024. However, all of the information accumulated at this point indicates that more in-depth review and study is needed. This review period will take at least 60 days before we determine next steps,” said Ed Austin, ALDOT's chief engineer.

“During this period, ALDOT will evaluate and refine updated construction cost estimates, long-term financing costs and methods, current market trends, the possibility of identifying additional funding, including federal funds, and other options,” Austin said.

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“This project has made great progress since 2019, and construction is nearly ready to begin. That said, this project, like other construction projects across the country, faces headwinds from inflation and interest rates. It is prudent for ALDOT to take the time to refine cost estimates and explore additional financing options,” said Mobile MPO Chair Sandy Stimpson.

“This is a critically important project for south Alabama, the state and the region,” said Eastern Shore MPO Chairman Jack Burrell. “We have to get this done right and build it in a fiscally responsible way. I'm frustrated by the lack of additional funding from the federal government and that inflation and interest rates remain high. ALDOT is making the right decision to dig in as much as they can to keep this project on track and within the framework.”

The agency said progress has been made to move this massive construction project forward since the MPOs jointly adopted a framework in December 2021 calling for ALDOT to construct the six-lane Mobile River Bridge and new bayway, as well as associated interchanges in Baldwin and Mobile counties.

As part of this framework, the MPO also wanted the Causeway, Wallace and Bankhead Tunnels and the Africatown Bridge to remain toll-free and tolls on new infrastructure to be no more than $2.50 per passenger vehicle.

At this point, a design-build contractor has been selected, archaeological investigations have been completed, design and geotechnical work has commenced, and all rights-of-way have been obtained.

“The leadership shown by local officials has been outstanding,” Austin said.

“This has enabled us to make great progress. However, it is frustrating, but not surprising, that project estimates are increasing due to rising inflation and interest rates. Every major construction project in the country is affected by economic factors, so it makes sense to work with local authorities to explore potential cost-saving measures. We look forward to a continued close and productive partnership.”

Grayson Everett is the state and politics editor for Yellow Hammer News. You can follow him on Twitter. Grayson