| Location |
Chicago, Illinois |
| PPP Option |
Long Term Lease (99 years) |
| Mode |
Toll Highway |
| Description |
The Chicago Skyway is a 7.8-mile elevated toll road connecting I-94 (Dan Ryan Expressway) in Chicago to I-90 (Indiana Toll Road) at the Indiana border. The facility includes a 3.5-mile elevated mainline structure crossing the Calumet River. Built in 1958, the Skyway was operated and maintained by the City of Chicago Department of Streets and Sanitation. The facility carried approximately 50,000 vehicles per day in 2005.
In March 2004, the City of Chicago issued a request for qualifications (RFQ) from potential bidders interested in operating the facility on a long-term lease basis in March of 2004. It received 10 responses and in May 2004 invited five groups to prepare proposals. Bids were submitted in October 2004, with the long term awarded to Cintra/Macquarie on October 28, 2004. Cintra/Macquarie bid $1.83 billion for the 99-year concession, 2.6 times as much as the next highest bidder, a French and Canadian group led by Vinci Concessions. Abertis Infraestructures of Spain was the only other bidder, offering $505 million for the lease.
The Skyway Concession Company, LLC (SCC) assumed operations on the Skyway on January 26, 2005. SCC is responsible for all operating and maintenance costs of the Skyway but has the right to all toll and concession revenue. This agreement between SCC and the City of Chicago was the first long term lease of an existing toll road in the United States. |
| Sponsor |
City of Chicago |
| Cost |
$1.83 billion |
| Type of Finance |
Original financial structure:
- Cintra equity: $397 million
- Macuarie equity: $485 million
- Bank Loans: $948 million (approximately)
SSC subsequently refinanced capital structure, which reduced the equity holdings of Cintra and Macquarie to approximately $510 million. Originally financed by European banks, the $1.550 billion refinancing also included Citgroup. $971 million of the refinancing involved capital accretion bonds with a 21-year maturity with an interest rate equivalent to 5.6 percent. There is an additional $439 million in 12-year floating rate notes, and $150 million in subordinated bank debt provided by Banco Bilbao Vizcaya Argentaria and Santander Central Hispano of Spain, together with Calyon of Chicago. |
| Revenue Sources |
Tolls: Up to $2.50 until 2008
$3.00 until 2011, $3.50 until 2013, $4.00 until 2015, $4.50 until 2017, $5.00 starting in 2017
Potential congestion pricing provision |
| Project Delivery / Contract Method |
NA |
| Private Operator |
Skyway Concession Company, LLC (SCC) |
| Private Investment Partners |
Cintra/Macquarie
- Cintra is a part of Grupo Ferrovial, one of the largest infrastructure development companies in Europe with a market capitalization of more than US$8 billion.
- Macquarie Infrastructure Group (Macquarie) is a subsidiary of Macquarie Bank Limited, Australia’s largest investment bank, with market capitalization of US $8 billion
|
| Lenders |
Original financing: Banco Santander Central Hispano, Calyon, Banco Bilbao Vizcaya Argentaria, Depfa bank syndicated $1.2 billion nine-year non-recourse senior debt to 15 international banks. |
| Status |
Refinancing closed in August 2005 |
| Innovations |
First long term lease of an existing public toll road in the United States
Funded a $500 million long-term and $375 million medium-term reserve for the City of Chicago, as well as a $100 million neighborhood, human, and business infrastructure fund to be drawn down over five years. |
| Related Links / Articles |
Official Site: http://www.chicagoskyway.org/
The TOLLROADSnews archives contain several informative articles on the Chicago Skyway http://www.tollroadsnews.info/archives.shtml |
