FDOT, I-4 Mobility Complete Financial Closing on I-4 Ultimate Project
Posted on: September 10, 2014 in Transportation News
The Florida Department of Transportation has completed a commercial and financial close on the $2.3 billion I-4 Ultimate reconstruction. The project blazes trails in public-private partnership and saves taxpayers nearly $69 million through low interest rates.
A public-private partnership concession agreement was executed with I-4 Mobility Partners OpCo. LLC; the concessionaire charged with designing, constructing, financing, maintaining and operating the project for 40 years.
FDOT Secretary Ananth Prasad said, “This is a monumental milestone for one of the most congested corridors of the state.”
The I-4 Ultimate project reconstructs 21 miles of I-4 from west of Kirkman Road in Orange County to east of State Road 434 in Seminole County. The I-4 Ultimate project will provide a choice to motorists by adding four variable tolled Express Lanes to I-4 while maintaining the existing free general use lanes.
The design phase of the project will begin in the fall of 2014, and FDOT anticipates construction will begin in early 2015.
FDOT and I-4 Mobility Partners, comprising Skanska and John Laing, worked toward financial close with lenders, including six commercial banks and the Federal Highway Administration through TIFIA credit assistance. This allowed FDOT to benefit from low interest rates, which resulted in a $68.7 million decrease from the I-4 Mobility Partners financial proposal.
Using the public-private partnership approach means the project gets finished sooner than with traditional methods. FDOT retains ownership of the interstate while transferring some risks and responsibilities to the concessionaire. Under the agreement, the concessionaire earns agreed-upon payments during construction, once construction is complete, and when the facility is open to traffic.
I-4 Mobility Partners has invested $104 million in the project. Commercial banks and TIFIA are lending $486 million and $949 million, respectively.
To find out more about the I-4 Ultimate Project, click here.