| The Dulles Greenway is a 14-mile, limited-access highway extending from the State-owned Dulles Toll Road, which carries traffic between Washington's Capital Beltway and Dulles Airport, to Leesburg. The two roads connect at a toll plaza. Drivers pay one toll, which the operators of the two facilities divide. Vehicles equipped with prepaid electronic tags may drive through "Fastoll" lanes without having to stop at a toll booth; their tags are read and their accounts debited automatically.
The Greenway is a real toll DBFO project, with operational responsibilities reverting to the Commonwealth of Virginia after 42.5 years. The developers receive the profits (assuming that the market eventually provides profits) for a long enough period to recoup their investment. Virginia's State Corporation Commission limits the rate of return on the project to 18 percent, but profits appear unlikely to approach that level anytime soon.
To finance the Greenway, TRIP II put up $40 million in equity, and secured $310 million in privately placed taxable debt. Ten institutional investors led by CIGNA Investments, Prudential Power Funding Associates, and John Hancock Mutual Life Insurance Company provided $258 million in long-term, fixed-rate notes (due in 2022 and 2026). Three banks (Barclays, NationsBank, and Deutsche Bank AG) agreed to provide part of the construction funding and $40 million in revolving credit. Loans are to be repaid with toll revenues, and the financing is secured by a first mortgage and security interest in the developer's right, title, and interest in the facility.
When the Greenway opened to traffic in September 1995, tolls were $1.75 each way, but when traffic fell short of projected levels, the level was reduced to $1.00. This attracted more users but did not increase revenues. Tolls were increased again to $1.15 in July 1997 and the Virginia General Assembly allowed the speed limit on the facility to be increased from 55 to 65 miles per hour.
Still facing financial challenges, TRIP II restructured its debt in 1999 and agreed to an extension of the project. In 2001 the Virginia State Corporation Commission extended TRIP II’s concession period for an additional 20 years to 2056. Tolls were most recently increased in September 2004 and feature varied peak and discounted off-peak point-to-point rates.
In August 2005 Macquarie Infrastructure Group (MIG) agreed to purchase TRIP II for $617.5 million. This included a payment of $84.5 million to Kellogg Brown & Root for its 13.3% share of the company, and $535 million to the Shenandoah Group, the family held company that had bought out Autostrade’s former 30% share to hold 86.5% of TRIPP II’s stock.
In July 2006 TRIP II sought regulatory approval for new toll rates on the Greenway, proposing variably priced tolls with a ceilings of $4.00, $4.50 and $4.80 during peak weekday periods in the peak direction in 2009, 2010 and 2012, respectively. Macquarie is also contemplating widening the facility to as many as 12 travel lanes.
http://www.dullesgreenway.com/cgi-bin/dgtolls2.cfm?home=#home |
