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Project Profiles

Grand Parkway (SH 99) Segments D-G

Location

Houston Metropolitan Region, Texas

Project Sponsor / Borrower

Texas Department of Transportation

Program Areas

Project DeliveryProject FinanceP3TIFIARevenue - Road Pricing Revenue

Fiscal Year Approved Fiscal Year 2014

Mode

Toll Highway

Description

Grand Parkway, SH 99 D-G is a 53-mile segment of the planned 180-mile circumferential Grand Parkway toll highway around the Greater Houston Metropolitan Region. The project includes five segments (a portion of segment D and segments E, F-1, F-2, and G in full) which are situated along the northwest portion of the parkway from just south of I-10 to I-69/US 59N (Eastex Freeway).

The Grand Parkway is divided into 11 segments in all (A through I-2), to be constructed at different times as deemed necessary. Segments D and I-2 have been constructed and are open. The portion of segment D which is within Harris County is included in the project. Segment E is under construction and was completed December 21, 2013. The remaining five segments are in planning and environmental stages.
Segments F-G include more than 50 bridges, frontage roads, utilities, and associated drainage. The Parkway will feature all-electronic tolling, with toll booths place intermittently along the completed segments.

The completed Grand Parkway Project will be a four-lane, 53-mile toll road in Harris County and Montgomery County. The TIFIA loan will go toward the design and construction of specific sections of the project.

Cost

$2.9 billion

Funding Sources

TIFIA loan - $840.645 million
Grand Parkway System -

  • $200 million First Tier Toll Revenue Bonds
  • $1.9 billion Subordinate Tier Toll Revenue Bonds (TELA supported)

Project Delivery / Contract Method

Design-Build

Private Partners

Segments D-E Design-builders: Williams Brothers Construction, Webber, Hassell Construction, J.D. Abrams, and Lone Star Road Construction

Segments F-G Design-builder: Zachry-Odebrecht Parkway Builders (Joint venture of Zachry Construction Corporation and Odebrecht USA)

Engineering consultants:

  • Parsons Transportation Group
  • Dannenbaum Engineering
  • Brown & Gay Engineers, Inc.
  • PGAL

Project Advisors/Consultants

Estrada Hinojosa & Co., Inc. - Financial Advisor

Goldman Sachs, Underwriter for the Revenue Bonds

Mayer Brown- Counsel to the Borrower

Additional Advisors

To USDOT TIFIA JPO:

  • TIFIA Financial Advisor - Taylor-DeJongh
  • TIFIA Legal Advisor - Bryant, Miller, Olive, PA

Lenders

Bondholders, USDOT TIFIA

Duration / Status

Segments D and E are completed or nearing completion.

TxDOT awarded Segments F-Gto Zachry-Odebrecht Parkway Builders in September 2012. Construction began July 2013; expected substantial completion in January 2016.

TIFIA Credit Assistance

Direct Loan: $840.645 million

TIFIA will be repaid with toll revenues from the Grand Parkway System

Financial Status

TIFIA credit agreement was executed on February 6, 2014.

Financial close occurred on February 6, 2014.

TxDOT issued $2.9 billion in Grand Parkway System Toll Revenue Bonds in July 2013. Approximately half will go to funding the construction of Segments F-G of the parkway.

Innovations

  • The design-build team is scheduled to complete the project in 842 days, 150 days faster than the draft schedule created by TxDOT.
  • TxDOT may opt to have the design-builder perform maintenance of the project for up to a 15-year period, as stipulated in the contract

Related Links / Articles

Grand Parkway Project Website (Segments F-1, F-2, G)

TxDOT Grand Parkway Website

Grand Parkway Association Website (affiliated with TxDOT)

Contacts

Texas Department of Transportation
James Bass, Interim Executive Director
Chief Financial Officer
(512) 305-9501
James.Bass@txdot.gov

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