Governor Palin Orders Termination of Lynn Canal (Juneau Access) Construction Contract

December 14, 2006, Juneau, Alaska – Governor Sarah Palin today directed the Department of Transportation and Public Facilities to terminate the construction contract for the planned 11-mile pioneer road to begin the Lynn Canal Highway. The governor concluded that the one-lane pioneer road the contract would build is not what Alaskans need and thus is not in the best interest of the state.

“Alaskans expect practical results and a transparent process. I am canceling this project because it would only achieve a narrow road, with incomplete segments including two major rivers without bridges and would not be open to the public when completed. I also believe the use of an emergency procurement was questionable and a more straightforward approach is appropriate,” Palin said. Though the DOT&PF signed a contract with Southeast Road Builders of Haines, Alaska, on November 30, 2006, the DOT&PF gave notice today of its intent to terminate this contract in the best interest of the state. The actions today should also resolve the outstanding procurement protest filed by an unsuccessful bidder, Kiewit Pacific Company, of Vancouver, Washington. Governor Palin has also directed the agency to delay any further contracting for construction of the project until such time as the new administration has further reviewed this and several other major projects that DOT&PF has underway.

“The next logical window for a normal construction contract would be in early 2007, after all permits have been issued for the project,” said Mal Menzies, DOT&PF regional director. “With the federal permits, the project could then use federal funds to build a two-lane highway instead of using 100 percent state funds to build a pioneer road.”