Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBFOM All Private Finance
# of Projects: 1
100% of the Results

Background informationProject Created: November 30, -0001

Project Name: Transform 66 (VA) Project
Year in Operation: 2022
Sector: Transportation
Subsector: Roads, Bridge, Transit
Status: Project Definition / Programming
Type: Substantial Alteration of Existing Facility
Description: A 50-year concession to build express toll lanes and other improvements along a 22.5 mile section of Interstate 66 outside the Capital Beltway in Northern Virginia between US Route 29 near Gainesville and Interstate 495 in Fairfax County, aimed at relieving the worst traffic congestion in VA. VA selected Express Mobility Partners to finance, design, maintain, and operate the toll expressway under a 50 year concession. As of May, 2017, the parties have not reached a financial closing. In October, federal approval of a $1.2B low interest loan was announced, which should permit financial close before 2018.
Delivery Method as described in the country where it's located: Public Private Partnership
Is the project still active: Yes
Comments:

Project Locations

Address: 13550 Lee Highway
City: Gainesville
State: Virginia
Country: United States of America

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land: Concession to upgrade and then operate I-66 for 22 miles west of the Capital Beltway as a toll road.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Express toll lanes to be added. Revenue stream to concessionaire. Tolls set by concessionaire.
Checkbox Checked Environmental Clearance

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: Value to state is described as a "$2.5 Billion cost saving." Concessionaire has offered to make a $500 million upfront payment to the state of Virginia. NO CASH OUTFLOW FROM VA. VA DOT was expecting a cash contribution from the state of up to $600 million. Net swing of $1.1 Billion in favor of the state. Plus spending commitments from concessionaire, as described below.

Arrow Right
Checkbox Checked

Credit Enhancements: Proposed that Virginia provide a 50 year concession, with the concessionaire given the authority to set toll rates (under a formula that is currently under negotiation.)

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: The concessionaire proposes to: (1) make an upfront payment of $500 million; (2) spend $800 million on transit projects [as yet unspecified] over the next 50 years, and (3) spent $350 million to improve mobility through the Route 66 corridor.

Checkbox Checked

From Producers as Equity: It is unclear yet what the debt and equity split is, as proposed by the consortium.

Project Delivery & Finance Method

Project Delivery:
Design Build Finance Operate Maintain (All Private Finance). Public Sponsor contracts for initial design, construction, and for long term operations and maintenance with a single entity. At the end of the term, Public Sponsor regains control of the facility.
Is there an independent checking engineer? No
Project Finance Method: All By Private Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals
Design Build Operate Finace & Maintain
X
X

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
50
0
Forms
Description
Other
Special arrangements now being negotiated. 

Project Value (If and As Known)

Date of Estimated Project Value: January 11, 2017
Project Value
Hard Cost
Hard & Soft Costs
Pre-Feasibility (Public Sponsor Expense)
(none)
> $50 Million US
Total
$2-10 Billion US
$2-10 Billion US

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