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Project Profiles

I-595 Corridor Roadway Improvements

Location

Broward County, Florida

Project Sponsor / Borrower

Florida Department of Transportation (FDOT)

I-595 Express, LLC

Program Areas

Project DeliveryProject FinanceP3TIFIARevenue - Road Pricing Revenue

Fiscal Year Approved

Fiscal Year 2008

Mode

Highway / Managed Lanes

Description

The I-595 corridor originally opened to traffic in 1989, coordinating the movement of high traffic volumes between the developable areas in the western parts of the Southeast Florida region with the established north-south freeway and principal roadways to the east, including I-75, Florida's Turnpike, SR 7, I-95 and US 1. However, travel demand within the corridor has increased at a pace where the long-range traffic forecasts for the current highway would be reached in the short term.

The I-595 Corridor Roadway Improvements project consisted of the reconstruction and widening of the I-595 mainline and all associated improvements to frontage roads and ramps from the I-75/Sawgrass Expressway interchange to the I-595/I-95 interchange, for a total project length of approximately 10.5 miles. The project passes through, or lies immediately adjacent to, six jurisdictions: City of Sunrise; Town of Davie; City of Plantation; City of Fort Lauderdale; Town of Dania; and unincorporated areas of Broward County.

A major component of the project is the construction of three at-grade reversible express toll lanes known as 595 Express, serving express traffic to/from the I-75/Sawgrass Expressway from/to east of SR 7, with a direct connection to the median of Florida's Turnpike. These lanes are operated as managed lanes with variable tolls to optimize traffic flow, and reverse direction in peak travel times (eastbound in the AM and westbound in the PM).

The project is a public-private partnership between FDOT and a private concessionaire to design, build, finance, operate, and maintain the roadway for a 35-year term. FDOT provides management oversight of the contract; installed, tested, operates and maintains all tolling equipment for the express lanes; and sets the toll rates and retains the toll revenue.

Cost

$1,833.6 million (present value in 2009 dollars, given a 5% discount rate) - total final acceptance and availability payments over the 35-year contract to design, build, finance, operate and maintain the roadway

Funding Sources

State and federal resources

  • Support FDOT's final acceptance payments ($686 million YOE) and availability payments ($65.9 million annual Maximum Availability Payment [MAP] in 2009 dollars) made to concessionaire (Federal aid receipts, state motor fuel tax receipts, toll receipts)

Concessionaire's financing sources for repayment

  • Senior bank debt - $781.1 million (backed by final acceptance/availability payments)
  • TIFIA loan - $603 million + capitalized interest during construction (backed by final acceptance/availability payments)
  • Equity - $207.7 million
  • Revenues - $10.0 million
  • FDOT qualifying development funds - $232 million

Project Delivery / Contract Method

DBFOM (Design, build, finance, operate, and maintain)

Private Partner

I-595 Express, LLC (ACS Infrastructure Development and TIAA (50/50 split of the equity portion on loan)) as Concessionaire

Subcontractors/Subconsultants

  • Dragados USA Inc. - Design-build contractor
  • AECOM Technical Services, Inc. - Lead engineering firm
  • HNTB Corp - Construction engineering and inspection
  • Roy Jorgensen Associates, Inc. - Operations & Maintenance

Project Advisors / Consultants

To Sponsor

  • Dewey & LeBoeuf LLP - legal
  • Macquarie Capital (USA) Inc. - financial
  • Scott Wilson, Plc. - technical

To Lender

  • Simpson Thacher & Bartlett LLP - legal

To Authority

  • Nossaman LLP - legal
  • Jeffrey A. Parker & Associates, Inc. - financial
  • Reynolds, Smith and Hills, Inc. - technical
  • The Corradino Group - construction oversight

To USDOT TIFIA JPO

  • TIFIA Legal Advisor - Hawkins Delafield & Wood LLP
  • TIFIA Financial Advisor - Taylor-DeJongh

Lenders

12-bank club (senior bank debt)

USDOT TIFIA

Duration / Status

Construction began in June 2009; substantial completion was achieved on March 26, 2014.

TIFIA Credit Assistance

Direct Loan - $603 million

USDOT has a subordinate lien on availability payments made by FDOT to I-595 Express, LLC.

Financial Status / Financial Performance

TIFIA loan agreement was executed on March 2, 2009. Financial close reached on March 3, 2009

The first interest payment was made in December 2014. Principal repayments are scheduled to begin in 2031. The final maturity of the TIFIA loan is June 2042. A six-month debt service reserve based on senior and TIFIA interest and principal will be available until the final maturity of the TIFIA loan. A $9 million contingency reserve was available until six months after scheduled substantial completion to cover construction cost overruns and help maintain target minimum DSCR.

Innovations

  • First U.S. application of availability payments to a transportation project.
  • I-595 Express, LLC received no compensation from FDOT until the facility was fully operational. Upon FDOT's final acceptance of the project construction, I-595 Express, LLC was eligible to receive a series of annual lump sum final acceptance payments, including potential incentive bonuses for completing a series of interim milestones (related to major construction activities) within established contractual deadlines.
  • Performance-based availability payments are made monthly during the operating period of the project. A maximum availability payment of $65.9 million (in 2009 dollars) began in 2014 and escalates annually. If quality and performance requirements stipulated in the contract as well as availability of the roadways to traffic are not met, then the availability payments are subject to downward adjustment in accordance with the contract.

Related Links / Articles

FDOT Project Website

Value for Money Analysis

Contacts

Florida DOT
District 4 Office
Tel: (954) 486-1400

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
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