Skip to main content

How the Center for Innovative Finance Support Office Does Business...

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 will relieve 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 will involve:

  • 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 will be dynamically priced after six months of an introductory fixed-price schedule. HOV2+ users will receive a 50 percent discount during peak operating periods. Tolls will be collected by the North Texas Tollway Authority.


$2,615 million (TIFIA eligible project costs)

Funding Sources

Private Activity Bonds (PABs) - $615 million

TIFIA loan - $850 million

Equity contribution - $664 million

Toll Revenues - $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

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

Expected completion in early 2016

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.


  • When completed, this project will have one of the most comprehensive managed HOV lane systems in the country, deploying Automatic Vehicle Identification (AVI) technology capable of reading the transponders of passing vehicles.
  • Innovative financing package includes PABs and TIFIA credit assistance.

Related Links / Articles

LBJ Express Project Website

TxDOT Project Website


Gary Moonshower, P.E.
Project Manager
P.O. Box 133067
Dallas, TX 75313-3067
Tel. (214) 320-4489

Andy Rittler
Director of Corporate Affairs
LBJ Infrastructure Group
Tel. (214) 592-3144

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
To view PDF files download the Adobe Acrobat Reader®