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.
Christine Ryan, head of Nossaman’s Austin office, guides public agencies through the process of structuring, developing, financing and operating large, complex and high-profile infrastructure projects, as well as smaller ...
Nossaman LLP’s 30-plus infrastructure attorneys offer clients, colleagues, strategic partners, and industry media a wealth of practical experience, insider insight, and thoughtful analysis here on Infra Insight. We blog about what we know best, from industry-leading procurements to local and national policy developments that affect the market and our clients.