Local contractors win US$1.4 billion highway modernisation P3 in Michigan

Local contractors win US$1.4 billion highway modernisation P3 in Michigan

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The Michigan Department of Transportation (MDOT) has announced that the Oakland Corridor Partners team is the preferred bidder to design, build, finance and maintain a segment of the Interstate Highway 75 (I-75). The final cost of the project is currently estimated at US$1.4 billion.

The project consists of rebuilding more than five miles (8km) of road, modernising the freeway, and improving 28 bridges between M-102 (Eight Mile Road) and 13 Mile Road in the communities of Hazel Park, Madison Heights, and Royal Oak, located in Oakland County, in the south-east of Michigan, a state in the Midwestern region of the USA.

Also included is a safety upgrade that separates traffic entering northbound I-75 from I-696, and northbound I-75 traffic exiting at 11 Mile Road. Additionally, MDOT is constructing a 14-foot diameter drainage tunnel between M102 and 12 Mile Road to separate and meter freeway water from the local storm system to mitigate future flooding concerns.       

Oakland Corridor Partners is responsible for the cost of designing, constructing and maintaining the road segment, with a 25-year maintenance period included in the contract. The team will be compensated for their investments through availability payments spread out over 30 years. This funding model will enable additional investments in other parts of the transportation system.

MDOT disclosed that Oakland Corridor Partners expects to achieve financial close on this contract by the end of the calendar year, and that detailed plans on construction activities and timelines will be announced when information becomes available.

The team is comprised of four local contractors: Dan's Excavating Inc., Ajax Paving Industries Inc., Jay Dee Contractors and CA Hull Co., all based in Michigan. MDOT has not disclosed who its competitors were, but it is thought that three other teams were shortlisted.

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