Skip to content

Project Profile: I-75 Modernization Project Segment 3

I-75 Modernization Project Segment 3

photo credit: Michigan DOT


Detroit Metropolitan Region, Michigan

Project Sponsor / Borrower

Michigan Department of Transportation

Oakland Corridor Partners

Program Areas

Alternative Project DeliveryProject Finance




Segment 3 of the Michigan Department of Transportation's (MDOT) I-75 Modernization Project will complete the reconstruction and widening of I-75 from M-102 (8 Mile Road) to south of M-59 in Metro Detroit. Segment 3 is a 5.5-mile segment located north of 8 Mile Road to north of 13 Mile Road in the Cities of Hazel Park, Royal Oak, and Madison Heights, Oakland County.

The full project's 18-mile corridor has not received comprehensive improvements since it opened in the 1960s. The need for increased capacity to relieve congestion has been driven by growth along the corridor from land use changes and migration of people, services, and industry. It is an important commercial, commuter, tourist, and local area business route moving people and goods across the state daily.

Segment 3 consists of complete pavement reconstruction, modernization of the freeway, ITS upgrades, and replacement of 28 bridges (22 vehicle overpasses and ramps and 6 pedestrian structures). Also included is a safety upgrade that separates traffic entering northbound I-75 from I-696, and northbound I-75 traffic exiting at 11 Mile Road. The project will widen a portion of the segment with the addition of an HOV/general purpose lane in both directions from the 8 Mile Road to 12 Mile Road. Additionally, the project will construct a 14-foot diameter drainage tunnel from 8 Mile Road to 12 Mile Road to separate and meter freeway water from the local storm system to mitigate future flooding concerns. The project will be delivered through a 30-year design-build-finance-maintain availability payment concession that combines what would have been 5 construction segments under design-bid-build and traditional finance methods into one segment, and accelerates the completion date by 12 years.

Segment 1, the northernmost portion from north of Coolidge Highway in Troy to north of South Blvd. in Auburn Hills was completed through design-bid-build contract delivery. Segment 2, the middle section from north of 13 Mile Road in Madison Heights to north of Coolidge Highway is being delivered through design-build contract delivery. The design-build contract was awarded in summer 2018 and construction will be complete in 2020.


$1.4 billion (total 30-year project cost in year-of-expenditure dollars including preventative maintenance)

Funding Sources

State and federal resources - owner pre-development costs, milestone payments during construction, availability payments over 30 years covering both capital repayment and maintenance costs

Concessionaire's financing sources for construction - $725 million

  • Private Activity Bonds - $609.9 million
  • Letter of Credit - $50 million
  • Private Equity - $47.4 million
Project Delivery / Contract Method


Private Partner

Oakland Corridor Partners

  • John Laing (40%)
  • AECOM (30%)
  • Dan's Excavating, AJAX Paving, Jay Dee Contractors (30%)
Project Advisors / Consultants


  • KPMG - Financial Advisor
  • Nossaman - Legal Advisor

To the concessionaire

  • BMO Capital Markets - Financial Advisor
  • Davies Ward Phillips & Vineberg - Legal Advisor
  • Louis Berger - Technical Advisor
  • WT Partnership - Technical Advisor
  • Marsh - Insurance


Duration / Status
  • Preferred bidder selected September 7, 2018
  • Commercial close reached October 12, 2018
  • Financial close reached November 20, 2018
  • Construction anticipated 2019-2022
  • Maintenance concession conclusion expected in 2048
Financial Status / Financial Performance


  • The DBFM procurement allows for the flexibility to fund the project with availability payments spread out over 30 years, enabling additional investments on other parts of the transportation system.
  • The procurement model requires the concessionaire to perform preventative maintenance along the project segment for 25 years after construction completion, ensuring reliable asset condition.
Related Links / Articles

MDOT Project Website


Mark Dubay
Michigan DOT
I-75 Innovative Contracting Project Manager
Tel: (517) 373-6845

back to top