- Briefing Room
Cities of Norfolk and Portsmouth, Virginia
|Project Sponsor / Borrower||
Project Sponsor - Virginia Department of Transportation (VDOT)
Borrower - Elizabeth River Crossings Opco, LLC
Highway / Tunnel
The Elizabeth River Tunnels (Downtown / Midtown Tunnel) project consists of five construction components involving three facilities in the Hampton Roads region of Virginia. Collectively, the project is known as the Elizabeth River Tunnels. The Midtown Tunnel portion consists of a new two-lane tolled tunnel under the Elizabeth River parallel to the existing Midtown Tunnel connecting the Cities of Norfolk and Portsmouth as well as modifications to the existing tunnel to provide increased capacity for east-west travel linking U.S. Route 58 and I-264 in Portsmouth to the interchange at Brambleton Avenue/Hampton Boulevard in Norfolk. Modifications to the interchange were also made. The planned improvements to the Downtown Tunnel have brought it into compliance with current fire and life safety standards. The MLK Extension portion of the project consists of an extension of Route 58 south from London Boulevard, approximately 0.8 mile to I-264 with an interchange at High Street.
The $2.1 billion project has been delivered on a design, build, finance, operate, and maintain (DBFOM) concession basis by Elizabeth River Crossings Opco, LLC (ERC) composed of Skanska Infrastructure Development and Macquarie Group. ERC is operating the concession for 58 years.
Est. Total Cost - $2,089 million (including construction, operations and maintenance, interest, reserves, insurance, and development costs)
Senior Debt (Private Activity Bonds) - $675 million
TIFIA loan - $422 million
Equity Contributions - $272 million
Public Funds - $408 million
Toll Revenues - $268 million
TIFIA Capitalized Interest - $43 million
|Project Delivery / Contract Method||
Design-build-finance-operate-maintain Toll Concession (58 years)
Elizabeth River Crossings Opco, LLC
Construction Joint Venture (design-build members)
|Project Advisors / Consultants||
To the Borrower
To USDOT TIFIA JPO
Bondholders, USDOT TIFIA
|Duration / Status||
Comprehensive Agreement with ERC signed in December 2011 (commercial close).
Financial close - April 12, 2012
Construction start - mid-2012
Duration of concession - 58 years
|TIFIA Credit Assistance||
Direct Loan - $422 million
The TIFIA loan will be repaid with toll revenues. TIFIA is further secured by a fully funded debt service reserve fund.
TIFIA credit agreement was executed on April 12, 2012.
Tolling of the existing Midtown and Downtown Tunnels to help finance the project, originally slated to start in September 2012, was delayed until February 1, 2014. VDOT provided additional state funding to compensate ERC for the lost toll revenue.
|Related Links / Articles|
P3 project development and procurement