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Project Profiles

IH 635 Managed Lanes


Dallas-Fort Worth Metroplex, Texas

Project Sponsor / Borrower

Texas Department of Transportation (TxDOT)
LBJ Infrastructure Group, LLC (the Concession Company and TIFIA borrower)

Program Areas

Project DeliveryProject FinanceP3TIFIARevenue - Road Pricing Revenue

Fiscal Year Approved

Fiscal Year 2008

Conditional term sheet was executed with the LBJ Infrastructure Group in January 2009.


Highway / Managed Lanes


The IH 635 Managed Lanes Project, known as the LBJ Express, relieves congestion north of Dallas on 13 miles of IH 635 (LBJ Freeway) from just west of I-35E (near Luna Road) to just east of US 75 (near Greenville Ave.), and south on I-35E from I-635 to Loop 12. The project involved:

  • Reconstruction of the main lanes and frontage roads along IH 635
  • Addition of six managed lanes (mostly subsurface) along IH 635 from I-35E to US 75 and four managed lanes west and east of that stretch
  • Addition of six elevated managed lanes along I-35E from Loop 12 to the I-35E/IH 635 interchange

The project is being built under a public-private partnership (Comprehensive Development Agreement [CDA]) between TxDOT and LBJ Infrastructure Group, which will operate and maintain the facility for 52 years. Construction is expected to take five years.

The managed lanes are dynamically priced following a six-month introductory fixed-price schedule. HOV2+ users receive a 50 percent discount during peak operating periods. Tolls are collected by the North Texas Tollway Authority.


$2,645 million

Funding Sources

Private Activity Bonds (PABs) - $606 million

TIFIA loan - $850 million

Equity contribution - $682 million

Toll revenues during construction - $17 million

Public funds - $490 million

Project Delivery / Contract Method

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

Private Partner

LBJ Infrastructure Group, LLC

  • Cintra Concesiones de Infraestructuras de Transporte, S.A.
  • Meridiam Infrastructure Finance
  • Dallas Police and Fire Pension System
  • APG Investments

Other Private Partners:

  • Ferrovial Agroman, S.A.
  • W.W. Webber, Inc.
  • Bridgefarmer & Associates, Inc.

Project Advisors / Consultants

Macquarie Capital (USA) Inc.- Financial Advisor

White & Case LLP - Counsel to the Concession Company

Bracewell & Giuliani LLP - Counsel to the Concession Company

Arup - Sponsor's Traffic Consultant

Hatch Mott MacDonald - Lenders' Traffic Advisor


  • TIFIA Legal Advisor: Hawkins Delafield & Wood, LLP
  • TIFIA Financial Advisor: Montague DeRose and Associates, LLP/High Street Consulting Group, LLC


Bondholders, USDOT TIFIA

Duration / Status

Commercial close (CDA execution) on September 4, 2009

Construction began on January 18, 2011

Fully opened to traffic in September 2015

TIFIA Credit Assistance

Direct loan: $850.0 million

The TIFIA loan will be repaid with project revenues, which include all income, tolls, revenues, rates, fees, charges, rentals, or other receipts derived by or related to the operation of the project.

Financial Status / Financial Performance

TIFIA credit agreement was executed on June 21, 2010.

Financial close for the PABs occurred on June 22, 2010.


  • One of the most comprehensive managed HOV lane systems in the country.
  • Innovative financing package includes PABs and TIFIA credit assistance.
  • Met the project goal to not increase the width or height of the existing roadway by constructing the managed lanes as an open trench, rather than placing them in tunnels, and cantilevering the existing general-purpose lanes above them. This approach also resulted in significant cost savings.

Related Links / Articles

LBJ Express Project Website

TxDOT Project Website


TxDOT Dallas District
Tel: (214) 320-4480

Robert Hinkle
Director of Corporate Affairs
LBJ Infrastructure Group
Tel: (682) 334-5470

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