Project Profile: LBJ Express/IH 635 Managed Lanes

photo credit: Cintra US

Location	Dallas-Fort Worth Metroplex, Texas
Project Sponsor / Borrower	Texas Department of Transportation (TxDOT) LBJ Infrastructure Group, LLC (the Concession Company and TIFIA borrower)
Program Areas
Mode	Highway / Managed Lanes
Description	The LBJ Express (formerly the IH 635 Managed Lanes Project) relieves congestion north of Dallas on 13 miles of I-635 (LBJ Freeway) from just west of I-35E (near Luna Road) to just east of US 75 (near Greenville Ave.), and south on I-35E from I-635 to Loop 12. The project involved: Reconstruction of the main lanes and frontage roads along I-635 Addition of six managed lanes (mostly subsurface) along I-635 from I-35E to US 75 and four managed lanes west and east of that stretch Addition of six elevated managed lanes along I-35E from Loop 12 to the I-35E/I-635 interchange The project is being built under a public-private partnership (Comprehensive Development Agreement [CDA]) between TxDOT and LBJ Infrastructure Group, which will operate and maintain the facility for 52 years. Construction is expected to take five years. The managed lanes are dynamically priced following a six-month introductory fixed-price schedule. HOV2+ users receive a 50 percent discount during peak operating periods. Tolls are collected by the North Texas Tollway Authority.
Cost	$2,645 million
Funding Sources	Private Activity Bonds (PABs) - $606 million TIFIA loan - $850 million Equity contribution - $682 million Toll revenues during construction - $17 million Public funds - $490 million
Project Delivery / Contract Method	Design-build-finance-operate-maintain Toll Concession (52 years)
Private Partner	LBJ Infrastructure Group, LLC Cintra Concesiones de Infraestructuras de Transporte, S.A. Meridiam Infrastructure Finance Dallas Police and Fire Pension System APG Investments Other Private Partners Ferrovial Agroman, S.A. W.W. Webber, Inc. Bridgefarmer & Associates, Inc.
Project Advisors / Consultants	Macquarie Capital (USA) Inc.- Financial Advisor White & Case LLP - Counsel to the Concession Company Bracewell & Giuliani LLP - Counsel to the Concession Company Arup - Sponsor's Traffic Consultant Hatch Mott MacDonald - Lenders' Traffic Advisor To USDOT TIFIA JPO TIFIA Legal Advisor - Hawkins Delafield & Wood, LLP TIFIA Financial Advisor - Montague DeRose and Associates, LLP/High Street Consulting Group, LLC
Lenders	Bondholders, USDOT TIFIA
Duration / Status	Commercial close (CDA execution) on September 4, 2009 Construction began on January 18, 2011 Fully opened to traffic in September 2015
TIFIA Credit Assistance	Direct Loan - $850.0 million The TIFIA loan will be repaid with project revenues, which include all income, tolls, revenues, rates, fees, charges, rentals, or other receipts derived by or related to the operation of the project.
Financial Status / Financial Performance	TIFIA credit agreement was executed on June 21, 2010. Financial close for the PABs occurred on June 22, 2010.
Innovations	One of the most comprehensive managed HOV lane systems in the country. Innovative financing package includes PABs and TIFIA credit assistance. Met the project goal to not increase the width or height of the existing roadway by constructing the managed lanes as an open trench, rather than placing them in tunnels, and cantilevering the existing general-purpose lanes above them. This approach also resulted in significant cost savings.
Related Links / Articles	LBJ Express Project Website
Contacts	TxDOT Dallas District Tel: (214) 320-4480 Robert Hinkle Director of Corporate Affairs LBJ Infrastructure Group Tel: (682) 334-5470 rhinkle@northtarrantexpress.com