Texas Department of Transportation (TxDOT) executed agreements on March 22 for the development of the SH 99 Grand Parkway project with Zachry-Odebrecht Parkway Builders, JV, a joint venture comprised of Zachry Construction Corporation and Odebrecht Construction Inc. The agreements provide for the design, construction and long-term capital maintenance of the Grand Parkway project, a 38 mile, greenfield toll road in Houston.
The high-priority project reaching final award consists of Segments F-1, F-2 and G of the Grand Parkway, part of a proposed 180+ mile highway, encircling the Houston area. The larger Grand Parkway has been shown on governmental planning documents since the early 1960's. A few of the other segments of the Grand Parkway are being developed using traditional construction contracts. Segments D and E are currently under construction and Segment I-2 and portions of Segment D are already open to traffic.
In September 2012, Zachry-Odebrecht Parkway Builders was determined to be the apparent best value proposer and conditionally awarded the design-build and capital maintenance agreements. The best value selection criteria included price, technical and schedule scores. Zachry-Odebrecht's proposed design and construction price is $1.07 billion, including $30 million in options.TxDOT's construction cost estimate exclusive of design was $1.160 billion. In addition, Zachry-Odebrecht proposed the fastest schedule at 842 days, which is 150 days earlier than the outside deadline set by TxDOT. The award to Zachry-Odebrecht was conditioned upon successful completion of negotiations and finalization of the agreements, as well as compliance with various legislative conditions to execution of the agreements. The necessary approvals, including a determination of legal sufficiency from the Attorney General's office, were received by TxDOT earlier last week.
It is anticipated that approximately $3 billion in revenue bonds will be issued in connection with the financing for Segments E, F-1, F-2 and G of the Grand Parkway. In addition, TxDOT has applied for a TIFIA loan. Financial close is anticipated to occur in May.