Project Profile: Pennsylvania Rapid Bridge Replacement Project

Pennsylvania (statewide)

Pennsylvania Department of Transportation (PennDOT)

Bridge

The Pennsylvania Rapid Bridge Replacement Project replaced 558 structurally deficient bridges across the commonwealth under a design-build-finance-maintain (DBFM) public-private partnership (P3) arrangement between PennDOT and Plenary Walsh Keystone Partners. The concessionaire is responsible for demolishing the existing bridges, constructing new bridges, and then maintaining the bridges for 25 years following construction. PennDOT will retain ownership of the bridges throughout the concession period.

Most of the bridges included in the program range from 40 to 75 feet in length and are located in rural regions on the state highway system. The project was completed in two phases with the first involving the replacement of 87 prioritized bridges. The second phase included the 471 remaining bridges. Construction was completed in 2019.

PennDOT chose the P3 structure to accelerate the replacement of the bridges and facilitate efficiencies in design and the construction of bridge components. This approach is expected to result in a 20-percent cost savings over the life of the concession period compared to PennDOT replacing and maintaining the bridges itself.

Project cost - $1.118 billion (includes financing costs)

Total Project Funding (construction period)

• Private Activity Bond (PAB) Proceeds (Series 2015) - $721.5 million
• PAB Sale Premium - $71.9 million
• Equity (Plenary/Walsh) - $59.4 million
• Mobilization and Milestone Payments - $224.7 million
• Availability Payments - $35.8 million
• Interest Earned - $4.9 million

Plenary Walsh Keystone Partners

• Financing/Management

  • Plenary Group USA Ltd. (80%)
  • Walsh Investors, LLC (20%)

• Construction

  • Walsh Construction Company
  • Granite Construction Company
• Lead Design - HDR, Inc.
• Bridge Maintenance - Walsh Infrastructure Management

Underwriters

• J.P. Morgan Securities LLC
• Well Fargo Securities

To the sponsor (PennDOT)

• KPMG - Financial and overall strategy advisor
• Public Financial Management, Inc. - Financial advisor
• URS - Program management
• CDM Smith/Lochner - Technical advisor
• Allen & Overy - Transactional counsel
• Ballard Spahr - Bond counsel

To the concessionaire

• Plenary Group - Financial advisor
• BTY Consultancy Group - Technical advisor
• INTECH Risk Management - Insurance advisor
• Fasken Martineau - Legal advisor

Pennsylvania Economic Development Financing Authority (Private Activity Bonds)

The Notice to Proceed was issued on January 31, 2015. Construction of the first batch of prioritized bridges began in June 2015. Construction on all 558 bridges was completed by the end of 2020.

Commercial close occurred on January 9, 2015.

• First project to be completed under Pennsylvania's 2012 P3 enabling legislation.
• First P3 project in the United States to use a performance bond with an accelerated adjudication period, which S&P credited in their ratings rationale as providing greater certainty to investors.
• Largest PAB financing for a P3 to date in the United States.
• Federal SEP-15 waiver to delegate NEPA/permitting responsibility to the concessionaire.
• Recipient of multiple awards, including Best Transport Project for 2015 by P3 Bulletin and North America P3 Deal of the Year for 2014 by Infrastructure Investor.

Rapid Bridge Replacement Project (PennDOT)
Rapid Bridge Replacement Project: Lessons Learned Report (PennDOT, 2019)