BRADENTON, Fla. — The Florida Department of Transportation and ACS Infrastructure Development Inc. opened the $1.8 billion Interstate 595 Express Lanes project on March 26 after a four-year construction period.
The 13-mile venture in Broward County, which includes 10 miles of three reversible tolled express lanes, is the state's first public-private highway project.
I-595 Express Lanes is also the country's first project that includes an availability payment scheme in which the concessionaire receives periodic payments based on meeting milestone and performance standards after completion of the project.
FDOT signed a 35-year concession agreement with ACS in March 2009 to design, build, finance, operate, and maintain the project. When the deal closed the credit markets were frozen.
To finance the work, ACS obtained $781.1 million in bank financing, put in $207.7 million in equity, and used a $603 million low-interest federal loan through the Transportation Infrastructure Finance and Innovation Act program. The DOT expects to make availability payments with toll revenues.
The P3 allowed the I-595 Express Lanes to be completed more than 15 years sooner than originally planned, and all construction milestones were achieved, according to Nossaman Inc., the state's P3 legal advisor.
I-595 received the 2009 Project of the Year Award from the American Road & Transportation Builders' Association "for outstanding contributions to the promotion of public private partnerships that advance transportation infrastructure improvements," Nossaman said.
It also was the North American Transport Deal of the Year by Project Finance Magazine in 2009.
