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Project Profile: Southern Ohio Veterans Memorial Highway (Portsmouth Bypass)

Southern Ohio Veterans Memorial Highway (Portsmouth Bypass)

photo credit: Portsmouth Gateway Group


Portsmouth to Lucasville, Scioto County, Ohio

Project Borrower / Sponsor

Ohio Department of Transportation (ODOT)

Portsmouth Gateway Group

Program Areas

Project FinanceTIFIA




The Southern Ohio Veterans Memorial Highway is a $646 million, 16-mile, four-lane, limited-access highway around the City of Portsmouth in Scioto County in South Central Ohio. Designated as State Route 823, the project will improve travel and regional mobility allowing motorists to avoid traffic signals and intersections on the current 26-mile route using US 52 and US 23. The Portsmouth Bypass will have five interchanges and is expected to provide travel time savings of up to 16 minutes per trip compared to the current route. The project will also provide a largely access-controlled alternative to I-77 and I-75 for motorists making trips between southern Ohio and the Columbus region, saving over 70 miles on some trips. The project is being delivered as an availability payment design-build-finance-operate-maintain (DBFOM) concession. ODOT will use traditional funding from federal and state taxes on motor vehicle fuels to cover the cost of the availability payments. The term of the concession will extend for 35 years once the highway is open.


$646.3 million (total cost including preconstruction activities, design, construction, and financing)

Funding Sources

Portsmouth Gateway Group Funding - $556.8 million (design, construction, financing)

  • Private Activity Bonds (PABs) - $227.3 million
  • PABs premium - $24 million
  • TIFIA Loan - $209.3 million
  • Private equity - $48.9 million
  • Interest earnings - $4 million

ODOT Funding - $89.5 million (preconstruction activities including environmental analysis, preliminary engineering, right-of-way acquisition) + $44 million (milestone payments)

  • Appalachian Development Highway System funds - $97 million
  • Other federal and state funds - $36.5 million
Project Delivery / Contract Method

Design-build-finance-operate-maintain Availability Payment Concession (39 years)

Private Partner

Portsmouth Gateway Group (concession company)

  • ACS Infrastructure Development
  • InfraRed Capital Partners Limited
  • Star America Infrastructure Partners

Design-build partners

  • Dragados USA
  • Beaver Excavating Company
  • John R. Jurgensen Co, Inc.
  • ms consultants
Project Advisors / Consultants

To the Sponsor

  • CH2M Hill - Technical advisor
  • Ernst & Young Infrastructure Advisors, LLC - Financial advisor
  • Calfee, Halter & Griswold LLP - Legal advisor
  • AON - Insurance

To the Borrower

  • ms consultants - Technical advisor
  • Societe Generale - Financial advisor
  • Ashurst LLP - Counsel


  • Skadden, Arps, Slate, Meagher & Flom LLP - TIFIA legal advisor
  • Louis Berger Group - TIFIA financial advisor

Bondholders, USDOT TIFIA

Duration / Status

Construction began in June 2015. Substantial completion is scheduled to occur in late 2018.

TIFIA Credit Assistance

Direct Loan - $209.304 million

The Project has a TIFIA interest rate is 1.27% because as a rural infrastructure project it is eligible for a 50% discount on the prevailing TIFIA interest rate.

Financial Status

TIFIA credit agreement was signed on March 31, 2015.

  • The project is the first availability payment P3 concession in Ohio.
  • By procuring the project on a DBFOM basis, ODOT has consolidated the implementation period for the project from 13 to 5 years.
Related Links / Articles

Portsmouth Gateway Group Project Website


Julie Gwinn
ODOT Office of Innovative Delivery
Tel: (740) 323-5240

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