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Project Profile: Katy Freeway Reconstruction

Katy Freeway Reconstruction

photo credit: Texas Department of Transportation (TxDOT)


Houston, Texas

Project Sponsor / Borrower

Texas Department of Transportation (TxDOT)

Program Areas

Project FinanceTolling and Pricing


Toll Road / Managed Lanes


The Katy Freeway is the Houston region's major east-west highway, extending 40 miles from the Central Business District west to the Brazos River. Constructed in the 1960s with three lanes per direction and two frontage lanes to accommodate approximately 80,000 vehicles per day, forty years later volumes were approaching three times those levels with chronic congestion lasting up to 11 hours a day.

TxDOT completed a major five-year reconstruction of a 12-mile section of the Katy Freeway from west of SH 6 to the I-10/610 interchange in October 2008. The reconstruction widened the Katy to provide six general purpose highway lanes in each direction and two variably priced high occupancy toll lanes in the median of the highway. The financing of the $2.8 billion project has involved an innovative collaboration between TxDOT and the Harris County Toll Road Authority (HCTRA), combining toll backed debt with more traditional grant funding.


$2.79 billion

Funding Sources

Federal funds - $1,421 million (Federal aid receipts)

State funds - $1,113 million (motor fuel tax receipts, vehicle license fees, other fees)

HCTRA - $238 million (toll receipts)

Other Local funds - $17.7 million (grants from HCTRA, Metropolitan Transit Authority of Harris County, City of Houston, Energy Corridor District)

Project Delivery / Contract Method


Private Partner


Project Advisors / Consultants

GEC - Parsons Brinckerhoff

Contractors - Williams Brothers and Balfour Beatty



Duration / Status

The project broke ground in 2003 and was completed in October 2008

Financial Status


  • First multi-lane electronic tollway in the nation with full design standards operating in the right-of-way of an interstate highway and providing multiple entrance and exit locations to drivers
  • Project completed without any federal earmarks
  • Use of Federal-aid leveraging mechanisms including Partial Conversion of Advance Construction, Tapered Match, and Toll Credits
  • Innovative financial partnership between a state DOT and a local toll authority
Related Links / Articles

Program Overview


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