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Infra Insight Blog Law & Policy

TxDOT Executes LBJ-635 CDA

Posted in PPPs, Tollroads/ Turnpikes/ Managed Lanes

Texas Department of Transportation (TxDOT) officials executed a comprehensive development agreement (CDA) with the LBJ Infrastructure Group to design, construct, finance, operate and maintain the 13-mile LBJ-635 corridor in Dallas County. Following the North Tarrant Express (June 2009), the LBJ-635 is TxDOT’s second toll concession to reach commercial close this year.

Construction is expected to begin by mid-2011 and open to traffic in late 2016. Motorists will have a choice of either using the managed toll lanes or remaining on the improved and rebuilt free main lanes. The new LBJ  highway will feature the following improvements:

  • 8 rebuilt free main lanes (a foot wider than they are now)
  • Additional shoulders on the outside of the main lanes
  • Continuous frontage roads (two or three lanes wide)
  • 6 barrier-separated managed toll lanes located between or below all frontage roads

For a state investment of approximately $445 million, these improvements will provide $4 billion of needed infrastructure to the Dallas area, as well as operations and maintenance over the next 52 years.  

The financing plan for the project through project completion includes a combination fo senior bank debt, private activity bonds, a subordinated TIFIA loan and a sizeable equity contribution.

 

 

Sources of Funds
($ million)

 

Uses of Funds
($ million)

Toll Revenue

35

Design–build agreement (“DB Agreement”) price

2,110

Senior Term Facility

395

Intelligent Transportation System (“ITS”) and Toll Collection System (“TCS”) budget

56

Private Activity Bonds (“PABs”)

395

Operating costs (“Operating Costs”) and maintenance capital expenditure

109

TIFIA Loan

790

Transaction costs

35

Equity Contribution

683

Interest / (Interest income)

239

Public Funds

445

Debt fees

40

   

Cash reserves funding

125

   

TIFIA subsidy cost

29

Total

2,743

Total

2,743

LBJ Infrastrucure Group is a limited liability corporation consisting of:

  • Cintra, Concesiones de Infraestructuras de Transporte, S.A (Equity Owner)
  • Ferrovial Agroman, S.A. 
  • W.W. Webber LLC 
  • Bridgefarmer & Associates, Inc. 
  • Meridiam Infrastructure Finance (Equity Owner) 
  • Macquarie Capital (USA) Inc. 
  • Ferrovial Infraestructuras S.A 
  • Grupo Ferrovial 
  • Meridiam Infrastructure, S.C.A. SICAR 
  • Dallas Police and Fire Pension System (Equity Partner)

The presence of the Dallas Police and Fire Pension System within the group is notable as further evidence of public pension funds’ interest in making direct investments in transportation infrastructure.