BRADENTON, Fla. – Georgia expects to save $421 million on the reconstruction of a critical intersection in the congested Atlanta region using a public-private partnership.
The State Transportation Board awarded the "best value" P3 to North Perimeter Contractors on Thursday.
The concessionaires, led by Ferrovial Agroman US Corp., the Louis Berger Group and Neel Schaffer Inc., will design, construct, and partially finance the Interstate 285-State Road 400 reconstruction project in an area known as Perimeter.
The project is the state's second P3, and originally was expected to cost $1.1 billion.
The total cost now has been reduced to $679 million because of the $460 million bid submitted by North Perimeter Contractors, according to the Georgia Department of Transportation.
The state expects to negotiate the final contract and aims to reach financial close by April, GDOT spokeswoman Jill Goldberg told The Bond Buyer.
GDOT credited the P3 procurement process for reducing the cost of the project.
"This is a great example of a public-private partnership bringing value to the citizens of Georgia by letting private sector innovation and financing build a better project," GDOT Commissioner Russell McMurry said in a statement. "There is still work to be done before reaching a final agreement, but we have certainly accomplished a major objective by identifying the group we intend to move forward with on delivering this important project to the community."
The project will rebuild the interchange and make improvements along a 4.3-mile stretch of I-285 from west of Roswell Road in Fulton County to east of Ashford-Dunwoody Road in DeKalb County, and 6.2 miles along SR 400 from the Glenridge Connector to Spalding Drive.
According to GDOT, the improvements are expected to save the average commuter eight hours a year in driving time and reduce cumulative delays by more than 20,000 hours daily. The entire project is expected to be complete by mid-2020.
There will be no tolls.
Georgia is paying for its portion of the project with state and federal funds, contributions from local governments along the corridor, and private funds from several organizations, including $10 million from the Perimeter Community Improvement Districts.
While Georgia does not release P3 documents until after final closing, an executive summary of North Perimeter Contractor's proposal indicates that the team plans to finance its costs through bank financing.
Last year, the Transportation Board authorized the issuance of $152.7 million in bonds for transportation projects, earmarking $130 million of bond proceeds for early stage work on the 284-400 interchange project.
The board also approved using $81.5 million in accrued state motor fuel funds to accelerate the project.
I-285 is a bypass loop around Atlanta, encompassing the Central Perimeter, which has become one of the largest employment centers in the Southeast. The interstate and the Georgia 400 are also major routes for trucks and shipping.
