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Plenary Walsh Keystone Partners consortium has closed financing for the Pennsylvania Rapid Bridge Replacement PPP project, the first PPP to bundle multiple bridges in a single procurement in the U.S.
The total project investment is estimated at US$899 million. The consortium successfully priced $721,485,000 of tax-exempt private activity bonds (PABs) on February 24th, and achieved financial close 22 days later as scheduled. The BBB rated PABs priced at a premium, were oversubscribed, and were purchased by over 40 different investors. JP Morgan Chase and Wells Fargo acted as the underwriters.
Plenary Walsh Keystone Partners includes: Plenary Group, infrastructure investor (80%), Walsh Investors, infrastructure investor (20%), The Walsh Group, lead contractor, HDR Engineering, lead engineer, and Granite Construction Company (contractor).
Under the P3 contract, Plenary Walsh Keystone Partners will finance and manage the design, accelerated construction, financing, maintenance and rehabilitation of 558 geographically dispersed, structurally deficient bridges across the state over a 28-year contract term. PennDOT will be responsible for routine maintenance such as snow plowing and debris removal.
The last of the bridges are scheduled for substantial completion by December 31, 2017, many years in advance of what the Commonwealth projects would have occurred under non-PPP approach.
Plenary Concessions' Chief Operating Officer for Civil Projects, Matt Girard, stated:
"This process has resulted in a solid partnership between Plenary and PennDOT that will now underpin the rollout of what will be a challenging 36-month construction program and the 25-year maintenance term that will follow for each bridge."
During this month we have reported about several PPP projects in the U.S.