Project Profile: Transform 66 - Outside the Beltway

photo credit: Virginia DOT

Location	Fairfax and Prince William Counties, Virginia
Project Sponsor / Borrower	Virginia Department of Transportation / I-66 Express Mobility Partners LLC
Program Areas
Value Capture Techniques	Asset Recycling
Mode	Highway / Express Lanes
Description	Transform 66 - Outside the Beltway will reconstruct and expand 22.5 miles of I-66 in Virginia from the I-495 Capital Beltway to US 29 in Gainesville. This section of I-66 currently has three general purpose lanes in each direction between I-495 and US 50 in Fairfax and two general purpose lanes in each direction west of US 50. The corridor also includes a single HOV lane in each direction. The Washington Metropolitan Area Transit Authority Metrorail runs along the median of I-66 from the Capital Beltway 2.5 miles west to the Vienna/Fairfax Metro Station. The project will: Expand the existing HOV lanes to two tolled express lanes in each direction that will operate as HOV3+ along the full corridor to University Blvd. in Gainesville where the express lanes will transition to a single HOV lane in each direction Expand the existing general purpose lanes to three lanes in each direction along the full corridor Add auxiliary lanes eastbound and westbound between interchanges from I-495 to US 29 (Lee Highway) in Centreville, and between Route 234 Bypass (Prince William Parkway) and US 29 (Lee Highway) in Gainesville Reconfigure certain interchanges (including full connectivity at the Capital Beltway interchange), modify or add collector-distributor roads, and provide bridge and utility upgrades Construct new park-and-ride facilities with over 4,000 spaces and direct access to the express lanes pedestrian/bike facilities and connections along the corridor Preserve a minimum 42-foot median for future transit use Provide new and expanded bus service along the corridor The project is intended to alleviate peak congestion, which extends across four to five hours in both the a.m. and p.m. peak periods, with speeds as low as 10-15 mph. I-66 currently serves over 220,000 vehicles on weekdays in Fairfax County. The corridor also experiences higher than average crash rates compared to other Virginia highways and few alternatives to single occupant vehicle use, as well as a growing regional population. The project is being delivered under a 50-year design-build-finance-operate-maintain public-private partnership concession. The private partner's investment includes an upfront payment of approximately $500 million that will be used to fund additional transportation improvements in the corridor. The concession agreement also requires the private partner to pay a net present value of $800 million for transit service in the corridor and $350 million for other projects to improve the I-66 corridor over the life of the concession.
Fiscal Year Closed	Fiscal Year 2018
Cost	$3.724 billion (TIFIA eligible project costs) $2.41 billion (total construction cost including civil works, right of way, building, O&M and toll systems)
Funding Sources	TIFIA loan - $1,229 million Private Activity Bonds - $737 million Virginia State Infrastructure Bank loan - $39.0 million Equity contribution - $1,525 million
Project Delivery / Contract Method	DBFOM (design-build-finance-operate-maintain)
Private Partner	I-66 Express Mobility Partners LLC Equity Investors: Meridiam Infrastructure North America Fund II Cintra Global Ltd. Cintra Infraestructuras S.E. APG Group John Laing Design-builder: Ferrovial Agroman US Corp. Allan Myers VA, Inc.
Project Advisors / Consultants	Lead Engineers: Janssen & Spaans Engineering, Inc. The Louis Berger Group, Inc. American Structurepoint To VDOT: Financial Advisor - KPMG Legal Advisor - Hunton & Williams Technical Advisor - CH2M Hill To I-66 Express Mobility Partners: Financial Advisor - Rubicon Infrastructure Advisors Legal Advisor - Gibson, Dunn & Crutcher Technical Advisor - Steer Davies Gleave Model Auditor - Mazars To USDOT Build America Bureau: TIFIA Financial Advisor - Scully Capital Services, Inc. TIFIA Secondary Financial Advisor - Project Finance Advisory Ltd. TIFIA Traffic and Revenue Risk Advisor - Booz Allen Hamilton TIFIA Legal Advisor - Skadden Arps Meagher & Flom LLP
Lenders	USDOT TIFIA, Bondholders
Duration / Status	Commercial close achieved December 2016. Financial close achieved November 9, 2017. Construction is expected to start in late 2017 and reach substantial completion by December 2022. Concession term, including construction - 50 years.
TIFIA Credit Assistance	Direct Loan - $1,229 million The TIFIA loan is secured by pledged net toll revenues (gross revenue minus annual O&M expenses).
Financial Status	TIFIA credit agreement was signed on November 7, 2017.
Innovations	The I-66 express lanes will include connections to the I-495 Capital Beltway express lanes, further expanding Northern Virginia's network of express lanes that also includes those on I-95 and those under construction along I-395. The Outside the Beltway project complements the Transform 66 - Inside the Beltway project east of the Capital Beltway to Route 29 in Rosslyn. This project converted the existing HOV lane to express lane operation during peak periods and will use the toll revenue to fund other travel options currently under consideration (bus, bicycle/pedestrian upgrades, parallel road intersection enhancements, Metro improvements). An additional eastbound lane will be constructed between 2018 and mid-2020.
Related Links / Articles	VDOT Project Website VDOT Office of P3s Project Website
Contacts	Susan Shaw, P.E. Megaprojects Director Virginia Department of Transportation susan.shaw@vdot.virginia.gov