![Downtown / Midtown Tunnel](https://webarchive.library.unt.edu/web/20161117160247im_/https://www.transportation.gov/sites/dot.gov/files/TIFIA_Downtown%20Tunnel%20Schematic.jpg)
Est. Total Cost: $2,089 million
Comprehensive Agreement with ERC signed in December 2011 (commercial close).
Financial close: April 12, 2012
Construction start: mid-2012
Expected completion: 2017
Duration of concession: 58 years
The Downtown Tunnel / Midtown Tunnel / MLK Extension consists of five components of construction involving three facilities in the Hampton Roads region of Virginia. 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 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 U.S. Route 58 south from London Boulevard, approximately 0.8 mile to I-264 with an interchange at High Street.
The $2.1 billion project will be built on a design, build, finance, operate, and maintain (DBFOM) concession basis by Elizabeth River Crossings Opco, LLC (ERC) comprised 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 is expected to commence by January 31, 2014.
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
DBFOM (design, build, finance, operate, and maintain)
Project design:
- Parsons Brinckerhoff
- Volkert & Associates, Inc.
- COWI
- Systems Support
- Transdyn
- Federal Signal - ETC design, installation, O&M
To the Borrower:
- Macquarie Capital Funds Inc. - Finance
- Steer Davies Gleave - Traffic & Revenue
- McGuireWoods Consulting - Public Affairs
- Orrick, Herrington & Sutcliffe - Borrower's Legal Counsel
- Hunton & Williams - Borrower's Local Counsel
- PBS&J - Intelligent Transportation Systems OR Colan Associates - Right of Way
- Arup - Equity TA/Asset Condition Survey
- Atkins - Lender's TA and Traffic Advisor
- Marsh - Insurance
To USDOT TIFIA JPO:
- TIFIA Legal Advisor - Katten Muchin Rosenman LLP
- TIFIA Financial Advisor - Scully Capital
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.
Virginia's Commonwealth Transportation Board issued its first GARVEE bonds under the Commonwealth of Virginia Federal Transportation Grant Anticipation Revenue Notes Act of 2011 to provide the public subsidy to support the project's private financing.
P3 project development and procurement:
Ryan Pedraza
Program Manager, Office of Transportation Public-Private Partnerships
600 East Main, Suite 2120
Richmond, VA 23219
Tel: (804) 371-9870
ryan.pedraza@vdot.virginia.gov
Project construction:
Frank Fabian, PE
152 Tunnel Facility Drive
Portsmouth, VA 23707
Tel: (757) 396-6800
frank.fabian@vdot.virginia.gov