Project Profile: I-77 Express Lanes

photo credit: I-77 Mobility Partners LLC

Location	Charlotte, North Carolina
Project Borrower / Sponsor	North Carolina Department of Transportation (NCDOT) Cintra Infraestructuras, S.A.
Program Areas
Mode	Highway / Express Lanes
Description	The I-77 Express Lanes project was built to enhance mobility and travel time reliability in the I-77 corridor north of Charlotte, North Carolina. This region has experienced significant population growth over the past 25 years, particularly in the communities along the northern portion of the corridor in Iredell County. This population growth led to significant congestion on the I-77 corridor. The project added 26 miles of variably priced managed lanes along I-77 and I-277 through Mecklenburg and Iredell Counties. Two express lanes were built in each direction between uptown Charlotte and Exit 28 in Cornelius. One express lane in each direction was added between Cornelius and Exit 36 in Mooresville. The project converted the existing carpool (HOV) lanes to express toll lanes. The express lanes utilize all-electronic tolling. Vehicles with three or more passengers (HOV3+) can use the express lanes for free. Motorcycles, buses, and emergency vehicles can also use the express lanes at no cost.
Cost	$636 million
Funding Sources	Private Activity Bonds (PABs) - $100 million TIFIA loan - $189 million Public funding - $94.7 million Equity contribution - $248 million Interest income - $0.5 million Bond premium - $3.6 million
Project Delivery / Contract Method	Design-build-finance-operate-maintain Toll Concession (50 years)
Private Partner	I-77 Mobility Partners LLC Cintra Infraestructuras, S.A. Aberdeen Global Infrastructure Partners II John Laing Group Other Private Partners Sugar Creek Construction, LLC, a joint venture between FA Southeast and English Construction - Lead Contractor The Louis Berger Group - Lead Designer
Project Advisors / Consultants	C&M Associates - Concessionaire's Traffic and Revenue Adviser to the Sponsor Stantec - Traffic and Revenue Adviser KPMG - Financial Adviser Nossaman - Legal Adviser WSP \| Parsons Brinckerhoff - Technical Adviser To USDOT TIFIA JPO Shearman & Sterling LLP - TIFIA Legal Advisor IMG Rebel - TIFIA Financial Advisor To the Borrower C&M Associates, Inc. - Traffic and Revenue Advisor Gibson, Donn & Crutcher LLP and Parker Poe Adams & Bernstein LLP - Counsel to Borrower
Lenders	Bondholders, USDOT Build America Bureau
Duration / Status	Commercial close was reached on June 26, 2014. Construction began in November 2015, and the project opened to traffic in November 2019.
TIFIA Credit Assistance	Direct Loan - $189 million The TIFIA loan is backed by project revenues.
Financial Status / Financial Performance	Private Activity Bonds sold on May 13, 2015 TIFIA credit agreement was executed on May 19, 2015
Innovations	A Developer Ratio Adjustment Mechanism (DRAM) is available to the private partner if toll revenues are insufficient to cover operational and/or debt service costs over specified periods of time. Travelers can "declare" HOV3+ status and use the express lanes for free with the NC Quick Pass app or on their computer 15 minutes before they travel in the express lanes. With the NC Quick Pass Flex transponder, travelers can make the declaration instantaneously with the flip of a switch.
Related Links / Articles	Project Website NCDOT Project Website Executed Comprehensive Agreement
Contacts	NCDOT