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The Virginia Department of Transportation (VDOT) has announced that the procurement of Interstate 66 Outside the Beltway project will proceed with a design, build, finance, operate and maintain (DBFOM) concession model.
The selection was made among three delivery methods that also included:
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. The new corridor will be composed of three regular lanes in each direction, two express lanes in each direction, high-frequency bus service with predictable travel times, and direct access between the express lanes and new or expanded commuter lots
The total project investment is estimated at US$ 2.1 billion. The maximum public cost of the project has been established at US$600 million.
In late October we reported that a total of three teams were shortlisted for the DBFOM delivery method. The shortlisted teams were the following:
In July 2014, the team kicked off a year-and-a-half of environmental study and community involvement. VDOT expects to select a private sector partner in the fall of 2016 with financial close scheduled for spring of 2017.
Kilpatrick will brief the Transportation Public-Private Partnership Advisory Committee of his decision on Dec. 14 in Richmond. The meeting, which begins at 2 pm at the VDOT Central Office in Richmond, is open to the public.
Transportation Secretary Aubrey Layne stated:
"Thanks to Governor Terry McAuliffe's leadership and in working with Delegate Chris Jones to reform the P3 process, the commonwealth was able to increase competition and get interested private sector parties to agree to terms that minimize risk and maximize benefits for taxpayers To make sure the commonwealth is in a position of strength in negotiations, we will keep the public financing option on the table until a contract is signed."
Commissioner Kilpatrick added,
"My decision is based on the facts and what's in the best interest of the public. The commonwealth put the new P3 law into action by closely evaluating risk and what would make the best business sense for the commonwealth. We developed business terms that would bring the greatest benefits to the public. This attracted healthy competition from 13 private sector proposals from five teams, all of them fully engaged."
We have recently reported on several PPP projects in the USA: