Over the last two decades, as revenues have lagged behind investment requirements, Congress and States have sought ways to expand the capacity of the Federal-aid program to deliver projects. Today, States and other project sponsors have available an array of project finance tools to facilitate the delivery of projects. Tolls, user fees, and other project-based revenue sources, in combination with new finance tools, can substantially increase state and local governments' ability to deliver projects. Transportation project finance innovations available to project sponsors include: Section 129 Loans, State Infrastructure Banks, Grant Anticipation Revenue Vehicles, TIFIA Credit Assistance, Private Activity Bonds, and Build America Bonds.
183-A Turnpike - Austin, Texas
The 183-A Turnpike is an 11.6-mile controlled access north-south tolled highway east of the existing US 183 in metropolitan Austin. This regionally significant project connects to the Central Texas Turnpike System, previously funded in part with TIFIA credit assistance. 183-A was developed by the state's first Regional Mobility Authority - CTRMA - which was legislatively authorized in 2001 to form at the county level if a regional toll authority did not already exist to construct, operate, and maintain toll roads. CTRMA opened a northern 5-mile extension of the 183-A in April 2012, fully funded with the sale of toll revenue bonds.
Central Texas Turnpike System
The Central Texas Turnpike System consists of three contiguous toll highways serving the Austin metropolitan region and the Austin-San Antonio corridor: SH 45 North, Loop 1, and SH 130 (Segments 1-4). State and local funding sources were combined with a Federal TIFIA loan to finance the project. SH 130 (Segments 1-4) was delivered via a design-build contract procured through Texas' first application of legislation permitting expanded private sector involvement.
Cooper River Bridge Replacement - Charleston, South Carolina
North America's longest cable stay span replaced the existing truss bridges connecting the City of Charleston and the Town of Mount Pleasant along Highway 17. Financing relied on the state's infrastructure bank, which provided a grant and loan backed by TIFIA.
Crenshaw/LAX Transit Corridor Project - Los Angeles, California
The Crenshaw/LAX Transit Corridor Project is a new 8.5-mile light rail transit line extending from the existing Exposition Line south to LAX, including a minimum of six transit stations (with off-street parking), the procurement of a minimum of 20 light rail vehicles, and the construction of a full service maintenance facility. The project is supported by a TIFIA loan backed by local sales tax revenue, as well as other state funds, including those from general obligation bonds, and additional local sales tax revenue.
Dallas Area Rapid Transit Project Orange Line Extension (I-3) - Dallas, Texas
The DART Orange Line is a partially open, light rail transit line connecting downtown Dallas with the City of Irving and Dallas/Fort Worth (DFW) International Airport northwest of Dallas. The 14.5-mile, $1.3 billion project is being opened in three sections. The TIFIA loan for this project will advance construction on the third phase of its light rail Orange Line extension project.
Delaware U.S. Route 301 - Northern Delaware
U.S. Route 301 in Northern Delaware will be upgraded to a four-lane, limited access toll road on new location, replacing the existing two-lane route. The 12.5-mile toll road will extend from the Maryland/Delaware state line to SR-1 and will include a 4.5-mile Spur Road extending to SR-15/SR-896. The purpose of the project is to improve safety and relieve congestion problems in the corridor. Fatality rates on the existing roadway are significantly higher than statewide and national averages. Funding for the project will mostly come through the sale of bonds (GARVEEs and toll revenue bonds), achieving the state's goal of minimizing any use of funds from the State Transportation Trust Fund.
Denver Union Station - Denver, Colorado
The Denver Union Station project is a public-private development venture located on approximately 50 acres in lower downtown Denver. Redevelopment of the site as an intermodal transit district surrounded by transit-oriented development will include light and commuter rail stations, a regional bus facility, new transit service, and pedestrian improvements. The project is being sponsored by a public benefit corporation formed by the City of Denver and its elements will be transferred to the Regional Transportation District as they are completed. Financing includes TIFIA and RRIF loans, federal grants and stimulus funding, and state, regional, and local contributions.
Downtown Tunnel / Midtown Tunnel / MLK Extension - Cities of Norfolk and Portsmouth, Virginia
The Downtown Tunnel / Midtown Tunnel / MLK Extension consists of five construction components involving three facilities in the Hampton Roads region of Virginia. The $2.1 billion project will be built on a design, build, finance, operate, and maintain (DBFOM) concession basis by Elizabeth River Crossings LLC (ERC) composed of Skanska Infrastructure Development and Macquarie Group. ERC will operate the concession for 58 years. Tolling of the existing Midtown and Downtown Tunnels to help finance the project will commence in January 2014.
Eagle Project - Denver Metro Area, Colorado
The East and Gold Line Enterprise (Eagle) Project is part of RTD's FasTracks, a voter-approved program to expand rail and bus transit throughout the Denver metropolitan region. The Eagle Project is being procured through a concession agreement between RTD and Denver Transit Partners to design, build, finance, operate, and maintain the project's components for 34 years.
Eleventh Street Bridge Project - Washington, DC
The Eleventh Street Bridge Project is replacing the existing twin bridges that carry I-295 over the Anacostia River in the southeast quadrant of the District. Three new bridges are being constructed and improvements being made to the interchanges at both ends, including adding missing movements to and from the north onto the Anacostia Freeway (I-295/DC 295). The project is funded through a mixture of federal and local funds including GARVEE bonds used in combination with tapered match.
Hudson-Bergen Light Rail - Hudson/Bergen Counties, New Jersey
The $1.0 billion, 9.5-mile initial operating segment was procured using innovative 15-year DBOM contract, resulting in an estimated 8 years in savings compared to a traditional multiple design-bid-build approach. The contract was later renegotiated to cover Segments II ($1.2 billion) and III ($100 million) that extended the rail another 7 miles, adding 8 stations.
I-4 / Selmon Expressway Connector - Tampa, Florida
The I-4 Connector is an elevated north-south toll road that will connect I-4 with the Selmon Expressway, two major east-west corridors in the Tampa region. The Connector will have exclusive truck lanes to provide direct access to the Port of Tampa and remove commercial traffic from local roads in Ybor City. The project is being delivered using a design-build-finance approach.
I-495 Capital Beltway HOT Lanes - Fairfax County, Virginia
The I-495 Capital Beltway HOT Lanes project is a P3 between VDOT and Capital Beltway Express, LLC, a joint venture of Fluor and Transurban. Improvements include 14 miles of twin HOT lanes in each direction, the replacement of more than 50 bridges and overpasses, and interchange upgrades. Financing includes the first-ever combination of TIFIA credit assistance and private activity bonds (PABs).
I-595 Corridor Roadway Improvements - Broward County, Florida
The I-595 Corridor Roadway Improvements project consists of the reconstruction and widening of 10.5 miles of the I-595 mainline from the I-75/Sawgrass Expressway to I-95. The project is being implemented as a P3 between FDOT and a private concessionaire, I-595 Express, LLC, to design, build, finance, operate, and maintain the roadway for a 35-year term. FDOT will make availability payments backed by Federal and state resources for the concessionaire's successful completion of construction and ongoing operations. The concessionaire's financing, backed by these availability payments, includes senior bank debt, a TIFIA loan, and private equity.
I-93 Reconstruction: Salem to Manchester - Southern New Hampshire
The Rebuilding I-93 Salem to Manchester project involves the reconstruction and widening of a 19.8-mile segment of I-93 in southern New Hampshire from the Massachusetts state line in Salem to the I-293 interchange in Manchester. It is being funded through proceeds from GARVEE and motor fuel tax revenue bonds, as well as other state highway funds and turnpike toll credits.
I-95 HOV/HOT Lanes - Fairfax, Prince William, and Stafford Counties, Virginia
The I-95 Express Lanes will be the second step in creating a regional network of tolled managed lanes in Northern Virginia. The project consists of the development, design, finance, construction, maintenance and operation of 29.4 miles of high occupancy toll lanes along I-95 and I-395 from Garrisonville Rd. in Stafford County to Edsall Rd. in Fairfax County over a 76-year concession period.
IH 635 Managed Lanes - Dallas County, Texas
The IH-635 (LBJ Freeway) Managed Lanes Project will relieve congestion north of Dallas on a 13-mile stretch of the LBJ Freeway with reconstruction of its main lanes and frontage roads and the addition of six managed lanes along I-635 (subsurface) and I-35E (elevated). The project is being built as a P3 (Comprehensive Development Agreement [CDA]) between TxDOT and LBJ Infrastructure Group, which will operate and maintain the facility for 52 years.
Intercounty Connector - Maryland
The Intercounty Connector (ICC) is a toll highway linking existing and proposed development areas between the I-270/I-370 and I-95/US 1 corridors within central and eastern Montgomery County and northwestern Prince George's County, Maryland. The project is largely supported by GARVEE and toll revenue bonds, as well as a TIFIA loan and State Transportation Trust Fund and General Fund revenues.
Interlink (formerly Warwick Intermodal Station) - Warwick, Rhode Island
Interlink, formerly the Warwick Intermodal Station project, is an intermodal project connecting air, rail, bus, automobiles, and rental cars at T.F. Green Airport in Warwick, RI that serves the Providence area and Southern Massachusetts. The project consisted of construction of a new commuter rail station with an enclosed walkway connection to the airport and a consolidated rental car center and parking garage.
Iway (I-195 Relocation Project) - Providence, Rhode Island
The Iway was composed of 16 individual projects to relocate a 45-year-old 1.6-mile stretch of I-195 and an adjacent 0.8-mile portion of I-95 through Providence, Rhode Island. This $610 million project was financed through GARVEE and motor fuel tax revenue bonds and has won national acclaim for its project management and bridge design and construction.
Katy Freeway Reconstruction - Houston, Texas
TxDOT undertook a major five-year reconstruction of a 12-mile section of the east-west Katy Freeway from west of SH 6 to the I-10/610 interchange west of Houston. The reconstruction widened the Katy to provide six general purpose highway lanes in each direction and two variably priced high occupancy toll lanes in the median of the highway. The financing of the $2.8 billion project has involved an innovative collaboration between TxDOT and the Harris County Toll Road Authority, combining toll-backed debt with more traditional grant funding.
LA 1 Improvements - Leeville, Louisiana
The Louisiana Department of Transportation and Development is in the process of replacing a major portion of existing LA 1 highway near Leeville, Louisiana, with a lengthy, 18-mile bridge. This area of the state's sensitive wetlands has been featured nationally as being the victim of coastal erosion and ground subsidence.
Miami Intermodal Center - Florida
Located next to the Miami International Airport (MIA), the Miami Intermodal Center is a large ground transportation hub incorporating a Rental Car Center, the Miami Central Station serving local rail transit, commuter rail, Amtrak, and intercity bus transit, major roadway improvements, the MIA Mover and future joint development. Federal, state, and local funding is supporting this $2 billion program.
Missouri Safe and Sound Bridge Improvement Program - State of Missouri
There were 10,405 bridges on the Missouri Department of Transportation system with at least 1,093 in Condition 3 (serious) or Condition 4 (poor). The Missouri Safe and Sound Bridge Improvement Program has replaced or rehabilitated 802 of these bridges using both a modified design-bid-build and design-build approaches.
New Mexico SR-44 - Northwest New Mexico
US 550/NM SR 44 runs from I-25 in Bernalillo north and west to the New Mexico/Colorado state line. This project involved the widening from two to four lanes of a 118-mile section running northwest from San Ysidro to just outside of Bloomfield, near the Four Corners. New Mexico law did not allow for design-build procurement at the time NM 44 was widened. However, the New Mexico State Highway and Transportation Department was able to create many of the efficiencies of design-build through a professional services contract.
North Tarrant Express - Dallas-Fort Worth Metroplex
TxDOT awarded two Comprehensive Development Agreements (CDA - equivalent to a P3) for the North Tarrant Express project to NTE Mobility Partners. The Concession CDA for Phase 1 includes the design, development, construction, finance, maintenance, and operation of 13 miles along Interstate (IH) 820 and SH 121/SH 183 north and east from Fort Worth. The duration of the concession is 52 years. The roadway is being reconstructed with the addition of two managed lanes and an additional general purpose lane in each direction. The CDA for Segments 2-4 includes developing master plans for the remainder of the NTE.
Pocahontas Parkway / Richmond Airport Connector - Greater Richmond, Virginia
This $354 million project was financed by tax-exempt toll revenue bonds issues by a 63-20 corporation. It is the first transportation project implemented under Virginia's Public-Private Transportation Act of 1995. The Parkway was leased to a private toll road operator in 2007. The deal defeased its underlying debt and included the construction of the 1.6-mile Richmond Airport Connector, which opened in January 2011.
Port of Miami Tunnel - Florida
The Port of Miami Tunnel will improve access to and from the Port of Miami, serving as a dedicated roadway connector linking the Port (located on an island in Biscayne Bay) with the MacArthur Causeway and I-395 on the mainland. The project is being developed as a P3 with Miami Access Tunnel, LLC (MAT). The state has agreed to pay for approximately 50 percent of the capital costs (design and construction) and all operations and maintenance, while the remaining 50 percent of the capital costs will be provided by the local governments. FDOT will make milestone payments to MAT at various stages of project development, followed by availability payments during a 30-year concession. Senior bank debt, a TIFIA loan, and private equity have been used to finance the project.
President George Turnpike - North Dallas, Texas
The President George Bush Turnpike (PGBT) is a 30.5-mile circumferential toll roadway connecting various cities in the northern part of the Dallas Metroplex. The original PGBT was fully opened in 2006 and was the first project to benefit from USDOT's TE-045 innovative finance provisions including a Section 129 loan, partial conversion of advance construction, and the use of flexible match. Construction on an Eastern Extension began in October 2008 and was opened in December 2011. The project was sponsored by the North Texas Tollway Authority and financed by toll-backed revenue bonds and other state and local resources.
President George Bush Turnpike Western Extension (SH 161) - Dallas, Texas
State Highway (SH) 161, the President George Bush Turnpike Western Extension (PGBT WE), will provide a new, approximately 11.5-mile link between SH 183, I-30, and I-20 as part of a western loop around Dallas through the cities of Irving and Grand Prairie south of Dallas-Fort Worth International Airport. This toll road was completed in four phases. The first three were constructed by TxDOT and the remaining phase and overall ownership and operation has become the responsibility of the North Texas Tollway Authority under a concession agreement signed in 2008.
Presidio Parkway - San Francisco, California
The Presidio Parkway project is a replacement of Doyle Drive, the southern access to the Golden Gate Bridge. The current structure, built in 1936, does not meet current highway standards and is seismically deficient. Through a competitive procurement process, Caltrans selected a private consortium, the Golden Link Concessionaire, to deliver Phase II as a design, build, finance, operate, and maintain (DBFOM) availability-pay concession. The P3 Project Agreement with GLC allows for milestone payments following substantial completion and quarterly availability payments through the concession period, based on performance.
Reno Transportation Rail Access Corridor (ReTRAC) - Reno, Nevada
Traffic congestion and safety concerns brought about the largest public works project ever undertaken in Northern Nevada, the Reno Transportation Rail Access Corridor, or ReTRAC. The project depressed a 2.3-mile stretch of freight rail that ran through downtown, eliminating 10 at-grade street crossings.
SH 130 (Segments 5-6) - Austin, Texas Metropolitan Area
SH 130 is a four-lane, 91-mile toll road east and south of Austin designed to relieve congestion on the heavily traveled I-35, the primary north-south route through Central Texas. Segments 5 and 6 have been developed through a 50-year concession (Comprehensive Development Agreement) with the SH 130 Concession Company (a joint venture of Cintra and Zachry American Infrastructure). They were financed with senior bank debt, a TIFIA loan, and private equity. Segments 1-4 were constructed under a design-build project as part of the Central Texas Turnpike System.
SmartWay Upgrade Kits - Oregon
Cascade Sierra Solutions (CSS), a non-profit organization, is responsible for deploying the SmartWay Upgrade Kits, which can include: engine idle reduction technology, such as an auxiliary power unit, direct fired heater, or truck stop electrification; low rolling resistance tires; advanced aerodynamics for tractors and trailers; exhaust after-treatment devices, such as oxidation catalysts and particulate filters.
South Bay Expressway (formerly SR 125 South Toll Road) - San Diego County, California
The South Bay Expressway toll road is a 9.2-mile privately-funded southern extension of SR 125, extending from SR 905 near the International Border to SR 54 near Sweetwater Reservoir in San Diego, California. The original operator, South Bay Expressway, L.P., held a 35-year franchise with the State of California under which it financed and built the highway, then transferred ownership to the State. The concessionaire emerged from bankruptcy in April 2011 as South Bay Expressway, LLC, and sold the toll road to the San Diego Association of Governments in December 2011.
South Carolina 27 in 7 - South Carolina
This statewide effort from 1999 to 2008 accelerated the implementation of 200 highway improvement projects worth over $5.0 billion from 27 to 7 years. The South Carolina DOT entered into partnerships with two private construction and resource management firms to undertake strategic planning and financial management and coordinate design and construction activities, all without augmenting the size of the state agency.
SR 520 Floating Bridge - Seattle, Washington Metropolitan Area
SR 520 is one of two major east-west roadways crossing Lake Washington, located within King County and the Seattle metropolitan area in the State of Washington. The SR 520 Floating Bridge and Eastside plus West Approach Bridge Project includes the replacement of the existing floating bridge across Lake Washington, the widening of the roadway to the east and accommodation of a transit/HOV lane, and the west approach project connecting to the floating bridge on the Seattle side. Project financing includes toll-backed revenue bonds and a TIFIA loan supported by tolls collected on the existing and replacement bridges, in combination with other federal and state funding.
Staten Island Ferries and Terminals - New York
The Staten Island Ferry provides over 21 million people a year (65,000 passengers a day not including weekend days) with ferry service between St. George on Staten Island and Whitehall Street in lower Manhattan. With the help of a $159 million TIFIA loan, the project included the redevelopment of the two ferry terminals and the purchase of three ferry boats.
Transbay Transit Center - San Francisco, California
The Transbay Transit Center Project will replace the current Transbay Terminal with a new multimodal transportation center and centralize the region's transportation network by accommodating nine transportation systems under one roof. The project consists of replacing the outdated Transbay Terminal with a modern transit hub, extending the Caltrain rail line from its current terminus and accommodating high-speed rail, and redeveloping the area surrounding the Transbay Transit Center.
Tren Urbano - San Juan, Puerto Rico
The Tren Urbano is a 10.7-mile, fully automated rapid transit that serves the metropolitan area of San Juan, which includes the municipalities of San Juan, Bayamón, and Guaynabo. The Tren Urbano consists of 16 stations along a single line, a vehicle maintenance and storage facility, rolling stock, and other supporting infrastructure.
Triangle Expressway - Raleigh-Durham, North Carolina
The 18.8-mile Triangle Expressway, composed of three sections, provides congestion relief on existing north-south routes serving the Research Triangle Park region (including I-40) between Raleigh and Durham. The project is being financed with toll and state revenue bonds and a $386 million TIFIA loan.
U.S. 36 Managed Lanes / Bus Rapid Transit Project: Segments 1 and 2 - Denver Metro Area, Colorado
A 10-mile stretch of U.S. 36, a four-lane divided highway connecting Denver and Boulder, will be reconstructed and augmented with a single HOT lane in each direction as part of an initial phase of planned upgrades over this 18-mile corridor. The design-build project will also include the reconstruction of five bridges, accommodations for bus rapid transit, provision for ITS, improvements to commuter rail stations, and a bikeway. Financing includes a TIFIA loan facilitated by a TIGER grant, as well as a mixture of federal, state, and local funding, including $120 million from the Regional Transportation District's FasTracks program supported by a regional sales tax. The project's second phase will extend the work another five miles toward Boulder and is being procured as a DBFOM P3, where the concessionaire is expected to operate and maintain the entire U.S. 36 HOT lane corridor as well as the existing I-25 Express Lanes that start at its southern terminus.
Veterans Memorial Bridge Replacement - Portland, Maine
The existing Veterans Memorial Bridge was built in 1954 to connect Portland's West End to South Portland over the Fore River. The new bridge, which includes a bicycle/pedestrian pathway as well as green spaces, opened in July 2012 and is designed to last 100 years. GARVEE bonds were sold as taxable Build America Bonds and tax exempt revenue bonds by the Maine Municipal Bond Bank in November 2010 to finance a portion of the project.
Washington Metro Capital Improvement Program - Washington, D.C.
The WMATA capital improvement program (CIP) replaced vehicles and rehabilitated facilities and equipment on the rail and bus systems. Individual components of the CIP included procurement of new buses and rail cars; major maintenance and rehabilitation of electrical and mechanical systems, communications, and track and structures to improve system-wide performance; escalator and elevator rehabilitation and other station enhancements; parking lot improvements; and upgrades to several maintenance facilities.