During a July 20, 2011 presentation before the Commonwealth Transportation Board, the Virginia Department of Transportation reported that VDOT reached agreement on major business terms with Elizabeth River Crossings LLC for the design, construction, financing, operations and maintenance of the Midtown Tunnel Project in the Portsmouth and Norfolk area. As a result of this major milestone, VDOT is targeting to reach financial close on the Midtown Tunnel Project by the end of 2011.
The Midtown Tunnel Project will involve the construction of a new two-lane tunnel under the Elizabeth River, extension of the Martin Luther King Freeway, and certain improvements to the existing Midtown Tunnel and Downtown Tunnels. The capital costs of the Midtown Tunnel Project is approximately $1.45 billion. Construction is scheduled to start in 2012 and to be completed in 2017.