Fact Sheet: Pocahontas Parkway-Richmond Airport Connector
Richmond, VA
Approved FY 2007
Borrower
http://www.pocahontasparkway.com/
Transurban, an Australian toll road operator; Transurban USA, Transurban (895) US Holdings LLC (T895)
Description
The Pocahontas Parkway (the "Parkway" or "Route 895") is an 8.8-mile toll road that includes an elevated river crossing over the James River outside Richmond, VA. The Parkway, also known as Route 895, is a four-lane, limited access toll road that provides a direct connection between Chesterfield County and eastern Henrico County. It is one of three river crossings in the greater Richmond area. Transurban acquired the Parkway in 2006 through a 99-year lease concession agreement to operate and maintain the toll road.
The Richmond Airport Connector (“RAC”) is a proposed 1.58-mile roadway that will connect the Parkway from one-third of a mile west of Monahan Road to Airport Drive near its intersection with Charles City Road in Henrico County. The four-lane, limited access roadway will provide a direct connection from Route 895 to Richmond International Airport. Under the terms of the concession, Transurban will construct and operate the Airport Connector.
Project Status
Construction on the Richmond Airport Connector is scheduled to begin in early 2008. Substantial completion is expected by the first half of 2010 when the road will be opened to traffic.
Funding Sources
Anticipated funding sources are as follows (dollars in millions):
- Bank loans: 400.9
- Equity: 140.9
- Cash from Pocahontas Parkway Authority (PPA): 0.8
- Subordinated note: 55.0
- TIFIA loan*: 150.0
- Total: $747.6
* A portion of the TIFIA loan is used to retire $95.2 million of the bank loans; another $41.5 million in capitalized interest has not been included in the total.
TIFIA Credit Assistance
Direct loan: $150 million.
The TIFIA loan will be secured by a pledge of net toll revenues that have a four-year history of collection, as well as the interest income from the various reserve accounts. The Loan is structured into two tranches: Tranche A provides for refinancing of a portion of the acquisition bank debt; Tranche B provides for construction of the RAC and Electronic Toll Collection System.
TIFIA Financial Performance
The TIFIA loan closed July 18, 2007. An initial draw is expected in August, 2007 for Tranche A. Draws for Tranche B will begin in 2008. Interest is capitalized through 2012. Loan repayments are scheduled to begin in 2029 and conclude in 2043.