- Briefing Room
Caption: The work zone of the Lincoln South Beltway project. The crews began working on bridge pilings and the support structures that will hold up a flyway crossing over U.S. 77 that westbound drivers will use to go south toward Beatrice.
Source: Credit to the Nebraska Department of Transportation
Lincoln South Beltway Highway
|Project Sponsor / Borrower
Hawkins Construction, Nebraska Department of Transportation
|Value Capture Techniques
Highway and Bridge
The Lincoln South Beltway project includes an 11-mile stretch of east-west freeway south of the City of Lincoln, Nebraska, located between U.S. Highway 77 (US-77) on the west and Nebraska 2 (N-2) on the east, and generally located 0.5 miles south of Saltillo Road. The project is intended to improve east-west connectivity for regional and interstate travel through Nebraska and reduce conflicts between local and thru traffic in Lincoln. In addition, the project will address increased travel demand on Lincoln’s transportation network, conflicts between local and regional trips along Nebraska Highway through Lincoln, and challenges associated with heavy truck traffic through Lincoln.
To improve traffic flow through the city, the freeway will connect N-2 southeast of Lincoln with US-77 southwest of Lincoln. The new freeway will include four travel lanes (two in each direction), inside and outside shoulders, a depressed median, and five grade-separated interchanges, including freeway connections with US-77 and N-2, and local road connections at S. 27th, S. 68th, and S. 82nd Streets. The project includes two system interchanges, three service interchanges, 43 miles of roadway alignments, 23 bridges, and 11 roundabouts.
To complete the State’s largest transportation project, the Nebraska Department of Transportation (NDOT) awarded Hawkins Construction with a contract in December 2019. The construction will occur in phases to minimize impacts to access.
NDOT partnered with the City of Lincoln, Lancaster County, and the U.S. Department of Transportation to secure funding and prioritize the project. To finance the project, the State developed a funding mechanism that would allow for payments to be spread out over eight-year period, despite the project’s expected three-year completion timeline. Per the contract, NDOT could pay a set amount each quarter, and Hawkins Construction could seek financing to cover costs during construction.
|Project Delivery / Contract Method
|Project Advisors / Consultants
$237 million Series 2020 Tax-exempt Bond Issued by the Arizona Industrial Development Authority as conduit issuer.
|Duration / Status
In December 2019, NDOT awarded Hawkins Construction a contract to build the Lincoln South Beltway. Hawkins Construction reached financial close on their bond financing on April 9, 2020. Construction began in February 2020 and is expected to be open to traffic by May 2023 and completed by May 2024.
|Financial Status / Financial Performance
On January 24, 2020, NDOT and the contractor entered a construction contract that generally requires Hawkins Construction to complete the project in three years while allowing NDOT to make a fixed stream of payments over the original seven- to ten-year pay schedule. Per the construction contract, the contractor will be eligible for certain progress payments paid by NDOT based on the amount earned for quantities of work completed and accepted by NDOT. To the extent, a monthly progress payment owed to the contractor is in excess of the applicable maximum cumulative amount specified under the construction contract - $7.5 million per calendar quarter - the excess amount of the progress payment owed to the contractor will be made by NDOT in the form of deferred-contract payment certificates issued to the contractor.
|Related Links / Articles