MegaProject 1038: European sponsors close financing for the US$3.7B toll road P3 in Virginia
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The United States Department of Transportation (USDOT) has approved to provide a US$1.2 billion Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the I-66 Outside the Beltway P3 transportation project in Virginia.
Additionally, Express Mobility Partners (the project sponsors) have launched a US$737-million private activity bonds issuance in order to complete the financing of the I-66 road P3. The final maturity date for the bonds is June 2057.
The equity amount represents 41.6% of the project’s financing while the bonds and the TIFIA loan comprise 20.1% and 33.3%, respectively.
Express Mobility Partners, a consortium of Cintra, Meridiam, Ferrovial Agroman US and Allan Myers VA, Inc., was selected last December to finance, design, build, maintain and operate the project under the Public-Private Transportation Act.
According to sources, APG and John Laing have recently joined the sponsor group for the P3 project, so the equity breakdown is: Cintra (50%); Meridiam (26.7%); APG (13.3%); and John Laing (10%). Ferrovial Agroman and Allan Myers will undertake the construction works.
The project involves building 35 kilometers along the I-66 corridor between Route 29, in the environs of Gainesville, and I-495, the Capital Beltway, in Fairfax County. The project aims to transform Northern Virginia's I-66 outside the Beltway into a multi-modal corridor that moves traffic and people quicker and in a more reliable way.
Infrata (technical), Ashurst (legal) and (AON) acted as advisors for the lenders. Rubicon is acted as financial advisor for the sponsors.
Governor Terry McAuliffe, said:
“The I-66 Outside the Beltway project is a prime example of how working collaboratively and creatively with all parties can achieve major transportation improvements that benefit and protect Virginia taxpayers. Securing a TIFIA loan was critical to the Commonwealth and its private partner’s ability to move forward and deliver this important public-private partnership transportation project. I am proud of the bipartisan work this administration has done to reform Virginia’s P3 program to increase competition, accountability and transparency in P3 projects.
EMP CEO for I-66 Javier Gutierrez said:
“Once we achieve financial close, our focus will be on securing design approvals and beginning construction on this transformational project. We have been working closely with our partners at VDOT, our design-build contractor FAM Construction, and the local community to ensure that we deliver a dramatically improved travel experience on a safer, more efficient I-66.”