Florida I-4 Ultimate in Orlando

The I-4 Ultimate project is the widening and reconstruction of a 21-mile stretch of I-4 from east of State Road 434 in Seminole County, Florida through downtown Orlando to west of Kirkman Road in Orange County. This public-private partnership project will fully reconstruct the existing general-purpose lanes; add four express toll lanes in the median; reconstruct 15 major interchanges; and reconstruct, construct, or widen 140 bridges. This project utilized TIFIA funding as well as P3 delivery methods through I-4 Mobility Partners, employing a Design-Build-Finance-Operate-Maintain method.

PR 22/5 in Puerto Rico

An initiative by the government of Puerto Rico to refinance and upgrade PR-22 and PR-5. PR-22 (also known as the Jose de Diego Expressway) is a 52-mile, 4-lane and 6-lane toll highway that stretches westward from San Juan to Arecibo along Puerto Rico's northern coast. PR-5 (the Rio Hondo Expressway) is a 2.5-mile eastward extension of PR-22 to the city of Bayamon. A $1.436 billion-dollar administrative concession was established to finance, rehabilitate, operate, and maintain the facilities for 40 years. This deal employed bank debt and private equity, and was awarded Project Finance International’s “Americas Deal of the Year” in 2011.

Central I-70 in Denver

The Colorado Department of Transportation procured a concession to reconstruct a 10-mile stretch of I-70 between Brighton Boulevard and Chambers Road, as well as add one new Express Lane in each direction, lower the interstate between Brighton and Colorado boulevards and place a 4-acre park over it, and remove the aging 55-year-old viaduct. This utilized a partnership between the Colorado Department of Transportation, the Colorado Bridge Enterprise, the High-Performance Transportation Enterprise, and Kiewit Meridiam Partners. Methods of funding utilized in this reconstruction included a $416 million TIFIA loan, $319 million in milestone payments by the Colorado Department of Transportation and the Colorado Bridge Enterprise, $114.7 million in private activity bond proceeds, and $66 million in equity funding. The project is scheduled to be completed in 2022.

Port of Miami Tunnel

The Port of Miami Tunnel Project was a collaboration between the Florida Department of Transportation, Miami-Dade County, the City of Miami, and MAT Concessionaire LLC to construct a 4,200-foot undersea tunnel connecting Watson Island with Dodge Island. MAT Concessionaire holds a 31-year concession to operate the tunnel, following a maximum of five years for construction. Project financing sources included a $341 million TIFIA loan, $341.5 million in short-term commercial bank debt, and $80 million in equity from MAT Concessionaire. This was followed by additional payments from FDOT to MAT Concessionaire upon completion of milestones during the construction period, which totaled $100 million. Upon completion of the construction, FDOT awarded MAT $350 million, followed by annual $32.479 million availability payments during the operating period. The tunnel was opened to traffic in 2014, and is traveled by an average of 16,000 vehicles per day.

SR-125 in San Diego

The South Bay Extension Project is a 12.5-mile extension of SR-125 in San Diego County, CA, running from SR-54 southward to Otay Mesa, just north of the Mexican border. The southern portion of this project, a 9.3-mile stretch of road, was financed through a private consortium, California Transportation Ventures, in exchange for a lease of a 35-year concession period to collect tolling revenues. This phase of the toll-road ultimately cost $658 million to construct, $340 million of which was drawn from senior bank debt, while $140 million was financed through a TIFIA loan. The final $130 million was funded through private equity. The additional northern section of the project, encompassing 3.2 miles of construction, was publicly funded.

Midtown tunnel in Hampton Roads

The Midtown Tunnel expansion project developed a two-lane tolled tunnel under the Elizabeth River in Virginia connecting the cities of Norfolk and Portsmouth. This project cost $2.1 billion-dollars, and was jointly built, financed, operated, and maintained by Skanska Infrastructure and Macquarie. It funding included $675 million in private activity bonds, a $422 million TIFIA loan, $308.6 million in public funds, and $272.3 million in equity.. The project is estimated to indirectly and directly create 15,000 jobs and generate substantial safety improvements to the tunnel. The expansion was completed in 2016.

State highway 895 in Richmond

Virginia lacked the funds to create a bypass around Richmond between Chippenham Parkway to I-295 and turned to private investors to finance the construction. The Pocahontas Parkway Association was the first entity to utilize Virginia’s Public Transportation Act of 1995, and employed tax-free bonds to finance the project. The partnership stipulated that the state would own the road, but the association would possess a long-term lease to repay investors through tolls. The project was funded originally through tax-exempt toll revenue bonds totaling $354 million, as well as a SIB loan of $18 million and an additional $9 million in federal funds. In 2006, Australian firm Transurban purchased the rights to enhance, manage, operate, maintain, and collect tolls on the Parkway for an additional 99 years. The terms of the deal required Transurban to construct a 1.58-mile connection toll road to Richmond International Airport as well as to absorb the remaining debt held by the Pocahontas Parkway Association. This 2006 lease utilized $420 million in senior bank debt, $55 million in subordinated debt, $141 million in equity contribution, and a TIFIA loan of $150 million.

Indiana Toll Road

In 2005, Indiana Governor Mitch Daniels sought to find private support to reverse a backlog of Indiana Toll Road highway maintenance and construction, and turned to a partnership called the Indiana Toll Road Concession Company comprising of Cintra and Macquarie. This group submitted the winning bid to operate the road, paying $3.8 billion. These proceeds funded a portion of the extension of I-69 though southwest Indiana and numerous other highway projects throughout the state in return for a 75-year lease on the Indiana Toll Road.

New Jersey Lottery outsourcing

A study of New Jersey’s lottery was completed, recommending the privatization of the state’s gaming program. These findings were accepted by New Jersey Governor Chris Christie, who approved a 15-year lease to run the program with Northstar New Jersey. Northstar is a joint venture of GTECH Corporation, Scientific Games and the Ontario Municipal Employees Retirement System. To secure this deal, Northstar delivered an upfront payment of $120 million to the state as well as promised to increase net lottery income over the life of the contract. While Northstar was to handle sales and marketing, New Jersey continued their oversight over prize payments, auditing, licensing, and security.

New Mexico highway 44/550

In order to widen New Mexico State Road 44 from two lanes to four, the state utilized a first-of-its-kind use of professional services contracting by employing a design-bid-warrant  agreement with private groups Mesa LLC, CH2M Hill, and Flatiron, in which the state gained many of the efficiencies of the design-build process such as rapid construction, cost savings, streamlined decision-making, and greater flexibility, while separately issuing the construction contract through a low-bid system. The state accomplished this by paying the private consortium fee warranty in which the design partners would guarantee the quality of pavement for a 20-year period, incentivizing the private group to act like an owner of the road.

Midway Airport in Chicago

The city of Chicago was interested in exploring concessioning Midway Airport as a way to fund infrastructure projects throughout the city. Great Lakes Airport Alliance proposed a deal to lease the Midway Airport for 40 years, worth an estimated $2 billion dollars. This deal would involve a revenue-sharing agreement between the Alliance and the city, as well as require that the Alliance pay off all outstanding Midway Airport debt. Any proposed deal involving the leasing of Midway Airport was required to have a structure providing an ongoing source of funding for long-term capital needs. The City ultimately decided not to pursue the transaction.  

UIL Acquisition of Philadelphia Gas Works

The City ran a process that culminated in a $1.86 billion-dollar offer that UIL would acquire and manage assets and liabilities belonging to the Philadelphia Gas Works, the nation’s largest municipally-owned natural gas utility. The investment would also expand PGW’s delivery of natural gas to energy consumers in the region, as well as diversify UIL’s energy portfolio. UIL had secured a $1.9 billion facility from Morgan Stanley Senior Funding. City government had planned on using the proceeds of the sale to fund the city’s pension fund. While Mayor Michael Nutter was an advocate for this deal, it was ultimately defeated by the Philadelphia City Council in 2014.

virginia dulles toll road

State Route 267 in Northern Virginia consists of two end-to-end toll roads and an airport access road.  The  two toll roads are the Dulles Toll Road (operated by the Washington Metropolitan Airport Authority) and the Dulles Greenway (operated by the private firm Atlas Arteria)  The non-tolled Dulles Access Road is in the median of the Dulles Toll Road and provides direct access, without egress, from the I-495 Beltway to Dulles Airport.

Dulles Toll Road

The Dulles Toll Road was built in 1984 by the Virginia Department of Transportation to provide local access to the Beltway (I-495) as more people moved out of the DC area and into the. The Dulles Toll Road is an 8-lane, 14-mile toll road with the 4-lane Dulles Access Road running in the middle. In 2008, VDOT transferred operation of the toll road to the Metropolitan Washington Airports Authority whose purpose operating the toll road includes financing the construction of the Silver Line Metro using the toll revenue to support the sale of bonds, which financed the construction of the Metro extension in to Loudoun County. The eastern end of the Dulles Toll Road connects directly to the Capital Beltway and connects to I-66 via the Dulles Connector Road and the western end connects to the Dulles Greenway.

Dulles Greenway

The Greenway is a privately-owned, 14-mile toll road that runs between the Dulles Airport and Leesburg, VA. Initially, the road was built as a “Design Build Finance Operate” (DBFO) project where the responsibility of operating the road would revert to Virginia in 2036, however, in 2001 this period was extended to 2056 by the Virginia State Corporation Commission. The Greenway is currently owned by Toll Road Investors Partnership II (TRIP II) and in 2005 Macquarie Infrastructure Group paid $533 million to acquire ownership  In 2017, Macquarie’s interest was acquired by Atlas Arteria. 

state highway 130 in texas

With increased traffic between San Antonio and Austin causing congestion along I-35, SH 130 is a 91-mile toll road that runs a parallel route intended to relieve that traffic. It is made up of 6 segments total, segments 1-4 make up 50 miles and run east of Austin to provide good commuter routes as well as quick airport access. These segments are operated by the Texas Department of Transportation and rates are calculated based off type of vehicle and distance traveled. The southern segments 5 & 6 make up a 41-mile section that is a public private partnership between TxDOT and the SH 130 Concession Company (a partnership between Cintra and Zachry American Infrastructure). This $1.35 billion facility was financed and built by the SH 130 Concession Company who will operate and maintain the roadway under the terms of a 50-year agreement. This part of the toll road boasts the highest speed limit in America at 85 mph and utilizes open tolling which allows drivers to be charged without slowing for a toll booth. In 2016, the SH 130 Concession Company filed for bankruptcy and emerged in 2017 with new ownership under Strategic Value Partners and its affiliates.