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Project Profiles

I-595 Corridor Roadway Improvements


Location	Broward County, Florida
Project Sponsor / Borrower	Florida Department of Transportation (FDOT)
Program Areas
Fiscal Year Approved	Fiscal Year 2008
Mode	Highway / Managed Lanes
Description	The I-595 corridor was opened to traffic in 1989, coordinating the movement of high traffic volumes between the developable areas in the western parts of the Southeast Florida region with the established north-south freeway and principal roadways to the east, including I-75, Florida's Turnpike, SR 7, I-95 and US 1. However, travel demand within the corridor has increased at a pace where the long-range traffic forecasts for the current highway would be reached in the short term. The I-595 Corridor Roadway Improvements project consists of the reconstruction and widening of the I-595 mainline and all associated improvements to frontage roads and ramps from the I-75/Sawgrass Expressway interchange to the I-595/I-95 interchange, for a total project length of approximately 10.5 miles. The project passes through, or lies immediately adjacent to, six jurisdictions: City of Sunrise; Town of Davie; City of Plantation; City of Fort Lauderdale; Town of Dania; and unincorporated areas of Broward County. A major component of the project is the construction of three at-grade reversible express toll lanes to be known as 595Express, serving express traffic to/from the I-75/Sawgrass Expressway from/to east of SR 7, with a direct connection to the median of Florida's Turnpike. These lanes will be operated as managed lanes with variable tolls to optimize traffic flow, and will reverse directions in peak travel times (eastbound in the AM and westbound in the PM). The project is being implemented as a public-private partnership between FDOT and a private concessionaire to design, build, finance, operate, and maintain the roadway for a 35-year term. FDOT will provide management oversight of the contract; will install, test, operate and maintain all tolling equipment for the express lanes; and will set the toll rates and retain the toll revenue.
Cost	$1,833.6 million (present value in 2009 dollars, given a 5% discount rate) - total final acceptance and availability payments over the 35-year contract to design, build, finance, operate and maintain the roadway
Funding Sources	State and federal resources Support FDOT's final acceptance payments ($686 million YOE) and availability payments ($65.9 million annual Maximum Availability Payment [MAP] in 2009 dollars) made to concessionaire (Federal aid receipts, state motor fuel tax receipts, toll receipts) Concessionaire's financing sources for repayment: Senior bank debt - $781.1 million (backed by final acceptance/availability payments) TIFIA loan - $603 million + capitalized interest during construction (backed by final acceptance/availability payments) Equity - $207.7 million Revenues - $10.0 million FDOT qualifying development funds - $232 million
Project Delivery / Contract Method	DBFOM (Design, build, finance, operate, and maintain)
Private Partner	I-595 Express, LLC (ACS Infrastructure Development and TIAA CREF (50/50 split of the equity portion on loan)) as Concessionaire Subcontractors/Subconsultants: Dragados USA Inc. - Design-build contractor AECOM Technical Services, Inc. - Lead engineering firm HNTB Corp - Construction engineering and inspection Roy Jorgensen Associates, Inc. - Operations & Maintenance
Project Advisors / Consultants	To Sponsor: Dewey & LeBoeuf LLP - legal Macquarie Capital (USA) Inc. - financial Scott Wilson, Plc. - technical To Lender: Simpson Thacher & Bartlett LLP - legal To Authority: Nossaman LLP - legal Jeffrey A. Parker & Associates, Inc. - financial Reynolds, Smith and Hills, Inc. - technical The Corradino Group - construction oversight To USDOT TIFIA JPO: TIFIA Legal Advisor: Hawkins Delafield & Wood LLP TIFIA Financial Advisor: Taylor-DeJongh
Lenders	12-bank club (senior bank debt) USDOT TIFIA
Duration / Status	Construction began June 2009; expected completion spring 2014
TIFIA Credit Assistance	Direct loan: $603 million USDOT has a subordinate lien on availability payments made by FDOT to I-595 Express, LLC.
Financial Status / Financial Performance	TIFIA loan agreement executed March 2, 2009 Financial close reached on March 3, 2009 The first interest payment is scheduled for June 2014. Principal repayments are scheduled to begin in 2031. The final maturity of the TIFIA loan is June 2042. A six-month debt service reserve based on senior and TIFIA interest and principal will be available until the final maturity of the TIFIA loan. A $9 million contingency reserve will be available until six months after scheduled substantial completion to cover construction cost overruns and help maintain target minimum DSCR.
Innovations	First U.S. application of availability payments to a transportation project. I-595 Express, LLC will receive no compensation from FDOT until the facility is fully operational. Upon FDOT's final acceptance of the project construction, I-595 Express, LLC will be eligible to receive a series of annual lump sum final acceptance payments, including potential incentive bonuses for completing a series of interim milestones (related to major construction activities) within established contractual deadlines. Performance-based availability payments will be made monthly during the operating period of the project. A maximum availability payment of $65.9 million (in 2009 dollars) begins in 2014 and escalates annually. If quality and performance requirements stipulated in the contract as well as availability of the roadways to traffic are not met, then the availability payments will be subject to downward adjustment in accordance with the contract.
Related Links / Articles	FDOT Project Website Value for Money Analysis Simpson Thacher Project Summary
Contacts	Joe Borello I-595 Project Manager Florida Department of Transportation Tel: (954) 845-9553 Joseph.Borello@dot.state.fl.us