A $910 million project in one of the fastest growing corridors in the North Texas, improving safety and mobility while reducing congestion and carbon emissions.
Meridiam, Cintra and APG have achieved financial close to begin constructing a new segment (3C project) for North Tarrant Express road in Texas, USA. The $910 million project will complement the existing interstate, one of the fastest growing corridors in the North Texas region, and will connect with two other of its operating segments.
The project will include reconstructed main highway lanes, expanded frontage roads and, additionally, two TEXpress Managed Lanes in each direction. The construction will be performed by Ferrovial Agroman US and Webber. Preconstruction activities are on-going and full construction will ramp up in 2020. Anticipated completion is late 2023.
TEXpress Lanes and redeveloped corridors across the North Texas region are providing much needed congestion relief in some fast growing and very densely populated urban areas. The improved mobility has been adding to the quality of life and economic development since 2014. "This new segment of completely modernized roadway carries all of the hallmarks of a successful project for Texas: it will improve regional capacity, safety, and reliable mobility for travelers while reducing congestion and carbon emissions for the region and the state." said Thierry Déau, Chairman/CEO of Meridiam.
The project is led by Meridiam, Cintra, a world leader in private sector development of transportation infrastructure, and APG, a financial services company working with large pension funds in the areas of fund administration, asset management and support in the public and private sectors. These shareholders have successfully completed and continue to operate and maintain three projects in North Texas, the North Tarrant Express and North Tarrant Express 35W in Tarrant County and the LBJ Express in Dallas County.
The project is being financed through a combination of private equity from investment partners and the sale of Private Activity Bonds (PABs). The equity investment is $160 million, and the PABs will provide $750 million to the total finance package. Tolls collected on the TEXpress Managed Lanes are used to pay for the ongoing operation and maintenance of the entire highway system as well as pay back the equity and bonds used to finance the project.