Fact Sheet: Capital Beltway/ I-495 HOT Lanes Project
Northern Virginia
Approval FY 2008
Borrower
Private sector concessionaire, Capital Beltway Express, LLC–90 percent owned by a US subsidiary of the Australian toll road operator, Transurban Group, and 10 percent by the American construction firm Fluor Enterprises, Inc. The Virginia Department of Transportation (VDOT) is providing significant funding for design, construction, and start up of the project.
Description
The project includes construction of four high-occupancy-toll (HOT) lanes added to the Capital Beltway/Interstate 495 between the Springfield Interchange and just north of the Dulles Tollway. The HOT Lanes—two in each direction—will employ electronic tolling and dynamic pricing to manage traffic flow. The project is being advanced under an 80-year concession agreement with VDOT. This project is designed to help alleviate congestion on Virginia’s busiest highway in the third worst congested region in the US. Certain users including high occupancy vehicles with three or more people, buses and emergency vehicles ("HOV3+") will be exempt from tolls. Drivers will enter and exit HOT Lanes from non-tolled general purpose lanes at multiple entry locations along the Improved Beltway Corridor. The HOT Lanes will employ state-of-the-art tolling technology, which will continuously monitor traffic levels. The amount of the toll will be based on demand and will fluctuate throughout the day to reflect real-time traffic conditions and maintain free flow traffic on the HOT Lanes.
Project Status
Construction is scheduled to start in Spring 2008. Substantial completion is expected by the first quarter of 2013. Transurban will participate as the manager, operator, and lead project equity investor. Fluor will participate as the design/build contractor and minority equity investor. The project will be built via a fixed-price turnkey contract.
Funding Sources
Anticipated funding sources are as follows (dollars in millions):
- Private Activity Bonds: $585.6
- TIFIA Loan*: 585.5
- VDOT Funds: 408.9
- Interest Income: 69.3
- Private Equity: 348.7
- Total: $1,998.0
* The TIFIA secured loan is approved for up to $589.0 million
TIFIA Credit Assistance
Direct loan: Up to $589.0 million.
The TIFIA loan holds a subordinate lien on a pledge of the project’s toll revenues and interest income, after operations and maintenance expenses, certain capital expenditures, senior debt service reserve, and debt service payments to senior lenders.
TIFIA Financial Performance
TIFIA signed a loan agreement on December 20, 2007. An initial draw is expected in May, 2008. TIFIA interest payments are expected to begin in 2018. Loan repayments are scheduled to begin in 2033 and conclude in 2047. The TIFIA loan is structured with five years of capitalized interest during construction followed by five years of partially capitalized interest during ramp-up; then current interest only for 15 years followed by 15 years of interest plus principal.