Miami-Dade County sells $200m bonds to pay for Miami tunnel P3

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Miami-Dade County sells $200m bonds to pay for Miami tunnel P3

Miami-Dade County sold more than US$200 million in revenue bonds this month to help finance construction of the Port of Miami Tunnel (POMT) P3 in Florida.

Miami-Dade County finalized the deal that allows the PortMiami tunnel to open later this month.

The tunnel is part of a US$2 billion capital-improvement plan at the Miami port. The project was temporarily cancelled in late 2008 due to the financial crisis but was resumed in 2009, with construction commencing in May 2010.

The commercial close with MAT Concessionaire, LLC, was achieved by Florida Department of Transportation on 2 June 2009 while the financial close was achieved on 15 October 2009. The port hold an opening ceremony on 19 May 2014 and is expected that the tunnel will soon be open to the traffic.

MAT Concessionaire, LLC, is formed by Meridiam Infrastructure Finance, S.a.r.l. (90% equity partner) and Bouygues Travaux Publics, S.A. (10% equity partner).

The project is being developed on a design, build operation and maintenance basis for a period of 35 years. The total cost of the POMT project is estimated at US$1073 million.

  • Design and Construction - US$607 million
  • SPV Costs/Insurance/O&M during construction - US$59.6 million
  • Financing and other capital costs - US$195.1 million
  • Reserves - US$41.2 million
  • State development cost - US$209.8 million

Ten banks, BNP ParibasBanco Bilbao Vizcaya ArgentariaRBS Citizens, N.A.Banco Santander, Bayerische Hypo, Calyon, DexiaING Capital, Societe Generale, and WestLB provided the senior debt financing for the project, which totals US$341.5 million. The remaining funds were or will be provided by:

  • TIFIA loan - US$341.5 million
  • Concessionaire equity - US$80.3 million
  • FDOT construction funding - US$100 million
  • FDOT other development funds - US$209.8 million

The project includes two 3/4 mile (1.1 km) tunnels as well as road improvements around the port. By connecting SR A1A/MacArthur Causeway to Dodge Island, the project will provide direct access between the seaport and highways I-395 and I-95, create another entry to the Port of Miami besides the Port Bridge, and keep the Port of Miami, the community's second largest economic generator, competitive.

Additionally, The POMT will improve traffic flow in downtown Miami by reducing the number of cargo trucks and cruise related vehicles on congested downtown streets, and will aid ongoing and future development in and around downtown Miami.

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