Megaproject 367: Commercial close reached for SH 183 managed lanes project

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Megaproject 367: Commercial close reached for SH 183 managed lanes project

SouthGate Mobility Partners and the Texas Department of Transportation (TxDOT) have achieved commercial close for the SH-183  Managed Lanes toll concession.

The consortium is formed by Kiewit Development Company and Kiewit Infrastructure South Company. TxDOT awarded the concession to the team on 2 June 2014.

Mayer Brown, a leading global law firm, represented TxDOT in the competitive procurement for structuring the public-private partnership (PPP) for the project.

The project involves the reconstruction of an approximately 9.3-mile section of SH 183 from SH 161 to Interstate Highway (IH) 35E/Trinity Parkway in Dallas County. The project will be built in phases. The interim phase of construction includes rehabilitation and replacement of deteriorating roadways and adding one managed toll lane in each direction.

SouthGate Mobility will also provide 25 years of operations and maintenance.

The toll road project, which is expected to be finished by 2018, is divided into multiple segments summarized below:

  • Middle Segment (5.6 miles, from SH 161 to West of Loop 12);
  • Diamond Interchange Managed Lanes Segment (1.7 miles, from West of Loop 12 to West of Grauwyler);
  • East Segment (1.4 miles, from West of Grauwyler to Empire Central); and
  • IH 35E Tie-In Segment (0.6 miles, from Empire Central to IH 35E/Trinity Parkway).

SouthGate Mobility Partners LLC will design and construct the project for US$847.6 million and finance US$250 million of deferred construction payments.

In late August, TxDOT reached commercial close on another road PPP project, the Loop 375-Border Highway West Extension in El Paso. The project's sponsor is also Kiewit Infrastructure South Company.

Additionally, TxDOT has recently shortlisted three teams for the design, build and maintenance of the SH 99/Grand Parkway segments H, I1 and I2.

The department has also announced plans to develop another road PPP project, a toll road which would connect Greenville and Wyle in Dallas.

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