- It is the largest Public-Private Partnership (PPP) bond financing in the US market to date
- It will be financed mainly through public funds from the TIFIA program and through the issuance of tax-exempt private activity bonds
ACCIONA and its partners, ACS Infrastructure and Meridiam, have reached financial close for the design, construction, operation, and maintenance for nearly 56 years of the SR400 Express Lanes toll road project in Atlanta (Georgia, US).
The total investment for the project is approximately US$11 billion (€9.62 billion) and it will be financed with both public and private funding sources. It is the largest Public-Private Partnership (PPP) bond financing project in the US market to date.
The US Department of Transportation, through the TIFIA (Transportation Infrastructure Finance and Innovation Act) program, will contribute approximately US$3,89 billion (€3,37 billion), the largest loan under this program to date.
The long-term financing includes the largest single issuance of Tax-Exempt Private Activity Bonds (PABs) for a highway public-private partnership worth US$3,44 billion (€2,95 billion). The bond issuance has received investment grade credit ratings of Baa3 by Moody's and BBB+ by Kroll, both with a stable outlook.
The remaining private capital will be injected during the construction period and is backed by letters of credit provided by ACCIONA and its partners.
PROJECT
The Georgia Department of Transportation (GDOT) and the State Road and Tollway Authority (SRTA) awarded this concession project to ACCIONA’s consortium last year. It is the first express lanes project under the Major Mobility Investment Program (MMIP) to improve mobility in areas with traffic congestion within Georgia.
The infrastructure will be built fifty-fifty by ACCIONA and Flatiron Dragados Constructors and will add two express lanes to the existing infrastructure along a 16-mile (25-kilometer) stretch between North Springs Station and north of McFarland Parkway. In addition, they will deploy another 0.9-mile (1.5-kilometer) fast lane in each direction from McGinnis Ferry Road to McFarland Parkway.
Once the work is complete, a dynamic toll system will be used for the express lanes to help improve traffic flow. This is a pioneering system where the driver pays according to the volume of traffic on the highway, allowing vehicles to access additional toll lanes when needed, which reduces traffic jams and polluting emissions.