How the Center for Innovative Finance Support Office Does Business...
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About Us |
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Capacity Building |
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Outreach/Awareness |
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Research |
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Technical Assistance |
Location |
Cities of Norfolk and Portsmouth, Virginia |
Project Sponsor / Borrower |
Project Sponsor: Virginia Department of Transportation (VDOT) Borrower: Elizabeth River Crossings Opco, LLC |
Program Areas |
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Fiscal Year Approved |
Fiscal Year 2012 |
Mode |
Highway / Tunnel |
Description |
The Downtown Tunnel / Midtown Tunnel / MLK Extension consists of five construction components involving three facilities in the Hampton Roads region of Virginia. Collectively, the project is known as the Elizabeth River Tunnels. The Midtown Tunnel portion consists of a new two-lane tolled tunnel under the Elizabeth River parallel to the existing Midtown Tunnel connecting the Cities of Norfolk and Portsmouth as well as modifications to the existing tunnel to provide increased capacity for east-west travel linking U.S. Route 58 and I-264 in Portsmouth to the interchange at Brambleton Avenue/Hampton Boulevard in Norfolk. Modifications to the interchange are also planned. The planned improvements to the Downtown Tunnel will bring it into compliance with current fire and life safety standards. The MLK Extension portion of the project consists of extending Route 58 south from London Boulevard, approximately 0.8 mile to I-264 with an interchange at High Street. The $2.1 billion project is being constructed on a design, build, finance, operate, and maintain (DBFOM) concession basis by Elizabeth River Crossings Opco, LLC (ERC) composed of Skanska Infrastructure Development and Macquarie Group. ERC will operate the concession for 58 years. Tolling of the existing Midtown and Downtown Tunnels to help finance the project, originally slated to start in September 2012, was delayed until February 1, 2014. VDOT provided additional state funding to compensate ERC for the lost toll revenue. |
Cost |
Est. Total Cost: $2,089 million (including construction, operations and maintenance, interest, reserves, insurance, and development costs) |
Funding Sources |
Senior Debt (Private Activity Bonds) - $675 million TIFIA loan - $422 million Equity Contributions - $272 million Public Funds - $408 million Toll Revenues - $268 million TIFIA Capitalized Interest - $43 million |
Project Delivery / Contract Method |
DBFOM (design, build, finance, operate, and maintain) |
Project Partner |
Elizabeth River Crossings Opco, LLC
Construction Joint Venture (design-build members):
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Project Advisors / Consultants |
Project design:
To the Borrower:
To USDOT TIFIA JPO:
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Lenders |
Bondholders, USDOT TIFIA |
Duration / Status |
Comprehensive Agreement with ERC signed in December 2011 (commercial close). Financial close: April 12, 2012 Construction start: mid-2012 Expected completion: early 2017 Duration of concession: 58 years |
TIFIA Credit Assistance |
Direct Loan: $422 million The TIFIA loan will be repaid with toll revenues. TIFIA is further secured by a fully funded debt service reserve fund. |
Financial Status / Financial Performance |
TIFIA credit agreement was executed on April 12, 2012 |
Innovations |
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Related Links / Articles |
Virginia Office of Transportation Public-Private Partnerships |
Contacts |
P3 project development and procurement: Project construction: |
