Financial Close on I-66 Raises the Bar on Transport P3s

Robust traffic and revenue forecasts throw open the gates on public benefits for Virginians, by William G. Reinhardt, editor
The Nov. 10 financial close on the I-66 toll concession in Virginia raises the bar for developers of demand-risk P3s in the U.S. The full public benefit of the 50-year deal negotiated by Virginia’s Department of Transportation (VDOT) is over $4 billion. That includes 22.5 miles of tolled express lanes built at no cost to the state, plus a $571-million concession fee paid at financial close.
Those commitments were financed with debt and a huge equity check—$1.5 billion, which amounts to 56% debt/capital. The project debt includes $737 million in senior lien PABs and a $1.229-billion subordinate TIFIA loan, both substantially back loaded.

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About Bill Reinhardt

Editor of Public Works Financing newsletter

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