Published: August 26, 2006 08:22 pm            

Long road ahead for King Coal project

CHARLESTON — At least $50 million in federal highway dollars, plus state matching funds, would connect the K.A. Ammar Jr. Interchange near Bluefield to the Mercer County Airport on Rt. 19.

That estimate is using today’s construction cost figures and current estimates for the 11 miles of bridges and roadway included in the Mercer County I-73/74 construction site proposal.

The facts are simple: The federal government’s highway reauthorization plan hands out limited amounts of money each year to states like West Virginia but even with a state match it is not enough to build large sections of the costly highway. The state is struggling to maintain its highway system and has nothing left to add to federal projects except the matching funds.

So, it might take a miracle of a $50 to $75 million grant or gift to be matched by state monies. State officials say they would match any money Mercer County could obtain for its short stretch of highway between the K.A. Ammar Jr. Interchange and Airport Road.

Transportation Secretary Paul Mattox said a few days ago that information circulating in Mercer County that the state would not match funds from the federal government are untrue. He said the state has never failed to provide its matching portion to a federal highway grant and will continue to do so. He said the state could not afford to turn back federal money for highway construction.

The amount of federal dollars needed for the local project could soar up to $75 million in a few years if construction prices continue to climb at the rate witnessed during the past several years.

State Highway Department officials say they are faced with a task that was described as “long-term ... probably not in this lifetime ...” when it was started more than a decade ago.

Jim Sothen, Deputy State Highway Engineer, explained the financial facts regarding the King Coal Highway.

At $50 million per year from the federal government, which he described as simply wishful thinking, plus state matching dollars, it would take 36 years at a minimum to build the highway across the southern end of West Virginia.

“Right now, the estimate is $1.6 billion to build the entire highway — if we got $50 million a year, which is wishful thinking and costs stayed the same. I emphasize — if costs for construction stayed the same as they are today, which we know won’t happen — it still would be a long time.

“If we could get $50 million a year that would mean $100 million in two years, $1 billion in 20 years ... so it would take us 36 years to get that kind of money to build the highway. And, again, that’s at today’s construction costs. We know that figure will be much higher and we also know it will be difficult to get $50 million a year from the federal government.”

Sothen said, “We knew when we started this highway it would be a 30- to 50-year process.”

He said the I-73/I-74 project is not the only one in West Virginia that is going through a long, drawn-out construction process. He said Corridor H is still under construction at $100 million funding a year. He compared that amount of money to the $5 million to $10 million for Mercer County annually and he said it’s going to be done in bits and pieces unless a large sum of money can be obtained.

“We are working hard to come up with a plan to build the road from the K.A. Ammar Jr. Interchange to the Mercer County Airport road ... we are working hard to get the money. Right now, we have two priorities, the Mingo County public/private partnership for construction of about 11 miles and the Mercer County road to the airport.

“The cost of the Nicewander road, caused by the terrain, is about $25 million a mile in a private/public agreement. We are paying for that as we go, progressively moving through the phases, but people have to understand this is a commitment. It has to come first because it was committed first.”

He said he understands the King Coal Highway Authority voted to request the DOH divide a recently announced $50 million federal grant between Mercer and Wayne counties but the bills have to be paid before new projects can be started.

Sothen explained that the coal company in Mingo County made an agreement with the Department of Highways, which the King Coal Highway Authority knew about and agreed with, several years ago. The coal company wanted to get the coal hauled out of the mountains so it made an agreement with the state to share costs to construct the road, bringing it up to grade standards. It would also become the state’s responsibility to pave it.

He said $50 million was authorized to date under the contract on the estimated $81.5 million project leaving the state needing an additional $31.5 million to finish the road to get it to grade.

“It will not be usable until we put the pavement on it ... the state agreed to pave the 11 miles and that will cost about $38 million,” the highway department official said.

He said Rep. Nick Rahall II, D-W.Va., obtained a federal grant of between $68 million and $69 million with the $38 million from the federal government designated specifically to be spent on the Mingo County project, “more than likely for the paving.”

He said in some cases money is designated simply for the King Coal Highway while in other cases, like the $68- 69 million Rahall obtained for Mingo County, the money has to be spent for that specific designation. Rahall obtained a similar grant several years ago for construction of the K.A. Ammar Jr. Interchange in Mercer County.

Saying highway officials share the frustration of people who want to see the King Coal Highway built, Sothen said, “The Department of Highways is just trying to get it built. The costs are escalating all the time. We know a price of $30 million that we have now will go up.”

Sothen was referring to the estimated $30 million highway officials say will be needed to complete the state’s financial obligation on paying costs for the original Mingo County project. DOH officials have already reported that the pay-off on Mingo County’s project will have to be made first before the rest of the money can be spent on other sections of the highway.

The money which has caused the dispute is a $50 million grant obtained several months ago in the federal highway budget by U.S. Robert C. Byrd, D-W.Va., for the King Coal Highway. It is “state” money and not designated specifically for a project so the state officials say they have to apply it to commitments, meaning the Mingo County project.

Sothen said, in answer to questions about why the remaining $20 million can’t be spent in Mercer County, that until the Mingo project is finished, they don’t know what the final cost will be.

In addition, “Today, we don’t have a nickel of that $50 million,” Sothen said. “We’ve done the paperwork and made the application but we don’t have the money yet.”

Sothen emphasized the state’s first responsibility is to pay its obligations, like the one in Mingo County.

He pointed out that the Federal Highway Reauthorization Fund is for six years, with five years remaining. The original amount in the reauthorization fund designated for West Virginia by Rahall and approved by the Congress is spread out over a six-year period. The money does not come in a lump sum. For example, a $12 million allocation would mean $2 million every year. At that pace, construction is slow.

Sothen said the state is committed to construction of the $15.8 million bridge and has the money authorized. He said in order to make the road usable from the Ammar interchange to the airport road, the total cost would be $77 million.

Sothen said the state never turns down federal matching grants. He said if Mercer County can raise $40 million to $50 million the state would match the money to complete the project.

“If we could get the money, counting our match, we could get it ready to go to contract now,” Sothen said, emphasizing money is the deciding factor.

“We feel certain our congressional delegation will continue to get money for the King Coal Highway,” Sothen said. “Sometimes we just have to wait two years to get it. There are only so many dollars.”

The highway official said the state does not have funds to put more than its matching portion with federal money for the federal highway projects in the state. He said a reduction in the amount of proceeds from the gasoline tax has caused the DOH to have to reduce its repair and maintenance budget this year.

Barbara Hawkins is Chief Political Correspondent for the Daily Telegraph. Contact her at bhawkins@sunlitsurf.com.

        

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