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Project Profiles

Port of Miami Tunnel

Location

Miami, Florida

Project Sponsor / Borrower

Florida Department of Transportation (FDOT)

Miami Access Tunnel (MAT)

Miami-Dade County

City of Miami

Program Areas

Project DeliveryProject FinanceP3TIFIA

Fiscal Year Approved

Fiscal Year 2010

Mode

Highway / Tunnel

Description

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 (State Road A1A - which connects Miami to Miami Beach) and I-395 on the mainland. Currently the Port is linked to the mainland only by the Port Bridge. The tunnel will: (i) improve access to the Port helping to keep it competitive and efficient, (ii) improve traffic safety in downtown Miami by removing cargo trucks and cruise line buses from congested city streets, and (iii) facilitate ongoing and future development plans in and around downtown Miami.
The project includes a tunnel under the Main Channel (the shipping channel between Dodge and Watson Islands), roadway work on Dodge Island and Watson Island/MacArthur Causeway and widening the MacArthur Causeway Bridge. Twin tubes, each 3,900 feet long and 41 feet in diameter, will reach a depth of 120 feet below the water.

The project is being developed as a public-private partnership 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.

Under the concession agreement, FDOT will provide MAT a total of $100 million in milestone payments during the construction period between 2010 and 2013 and a $350 million final acceptance payment upon construction completion. This will be followed by 30 years of availability payments during the operating period. The annual payment will be $32.479 million (2009$), with adjustments for inflation. Deductions will be made from this amount if MAT's operation of the facility does not meet prescribed performance standards.

Cost

Total Project Cost: $1,113 million ($1,072.9 in eligible project costs)

  • Design and Construction - $607 million
  • Financing and other capital costs - $195.1 million
  • SPV Costs/Insurance/O&M during construction - $59.6 million
  • Reserves - $41.2 million
  • State development cost - $209.8

Funding Sources

Total Eligible Project Costs: $1,072.9 million

  • Senior bank debt - $341.5 million
  • TIFIA loan - $341 million
  • Equity contribution - $80.3 million
  • FDOT milestone payments during construction - $100 million
  • FDOT development funds - $209.8 million

TIFIA capitalized interest during construction is not included in total eligible costs in the amount of $40.1 million

Project Delivery / Contract Method

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

Private Partner

Miami Access Tunnel, LLC (MAT)

  • Meridiam Infrastructure Finance, S.a.r.l. (90% equity partner)
  • Bouygues Travaux Publics, S.A. (10% equity partner)

Project Advisors / Consultants

Barclays Capital

Macquarie Infrastructure

To USDOT TIFIA JPO:

  • TIFIA Legal Advisor: Hawkins, Delafield & Wood, LLP
  • TIFIA Financial Advisor: Scully Capital Services, Inc.

Lenders

USDOT TIFIA

10-bank club (senior bank debt):

  • BNP Paribas
  • Banco Bilbao Bizcaya Argentina
  • RBS Citizens
  • Banco Santander
  • Bayerische Hypo- und Vereinsbank, AG
  • Calyon
  • Dexia
  • ING Capital
  • Societe Generale
  • WestLB

Duration / Status

Commercial close on June 2, 2009

Construction began in May 2010; substantial completion was achieved on August 3, 2014.

TIFIA Credit Assistance

Direct loan: $341.5 million

The TIFIA loan holds a second priority security interest in project revenues after senior obligations. The project's senior debt obligations will be fully amortized prior to commencement of TIFIA payments, providing TIFIA with a sole claim on project cash flows available for debt service.

Financial Status / Financial Performance

Financial close and TIFIA credit agreement were executed on October 15, 2009.

Availability payments are pledged to secure the TIFIA loan.

Innovations

Second U.S. application of availability payments to finance a transportation project (the first also being in Florida - the I-595 Corridor Roadway Improvements).

Related Links / Articles

FDOT Project Website

Financial fact sheet

Contacts

Teresa Alvarez, P.E.
District Consultant Management Engineer
FDOT
Tel: (305) 470-5142
Teresita.Alvarez@dot.state.fl.us

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