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Technical Resources

Archived Resources

MAY 2003 - ISSUE NO.7


Just in time for the holiday weekend, we bring you the TIFIA Times, your e-mail newsletter concerning the US Department of Transportation's credit program for large-scale surface transportation projects. We encourage you to share this newsletter with your associates throughout the transportation finance community.


U.S. DOT and San Diego Expressway Limited Partnership (SDELP) executed a $140 million loan today for the SR 125 South Toll Road project in San Diego, CA. The borrower, SDELP, is a private entity whose general partner is California Transportation Ventures, Inc. (CTV). CTV is a subsidiary of the Macquarie Infrastructure Group (MIG), an international fund investing more than $150 million to develop and operate the toll road. The loan proceeds will be used to help finance the design and construction of a 9.2-mile, four lane toll road in San Diego County, California, connecting with the regional freeway system and State Route 905 near the Otay Mesa border crossing. The SR 125 South is MIG's first project in the US.

The TIFIA loan will provide a portion of the overall project financing, with an additional tranche of bank debt being provided by Spanish bank Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) and Irish bank DEPFA BANK plc. They will be the joint lead arrangers of a $400 million senior construction and term loan facility which will be syndicated following financial close.

The SR 125 South Toll Road project had its origins in California's AB 680 legislation in 1989, which authorized the California Department of Transportation (Caltrans) to award up to four franchises to private firms to finance, design, construct and operate toll road facilities within the state. The declared intent of the AB 680 legislation is to "test the feasibility of building privately funded transportation facilities" at no cost to the state or federal government. Under the terms of the franchises, once construction is completed, ownership of the facilities is transferred to Caltrans and then leased back to the developer for up to 35 years.

The SR 125 South Toll Road is a key link in the regional transportation system that is needed to accommodate economic growth in the southern part of San Diego County. The project will facilitate traffic and trade across the U.S.-Mexico border at the Otay Mesa crossing. The current estimated project cost (including preliminary engineering, development costs, construction and financing) for the SR 125 South Toll Road is $642 million. The project is being funded from a combination of senior bank debt, TIFIA loan, sponsor equity, and donated right-of-way. This is the first TIFIA project advanced with substantial private equity and bank loans.


The mailing address for the TIFIA Credit Program is:

Federal Highway Administration (HABF-50)
Room 4310
400 Seventh Street, S.W.
Washington, DC 20590
202-366-2908 (fax)

Please e-mail your comments or inquiries regarding this newsletter or the TIFIA program to:

Duane Callender
TIFIA Credit Program
US Dept. of Transportation
202-366-2908 fax

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