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Capital Beltway Express/High Occupancy Toll (HOT) Lanes and 495 NEXT in VA

Capital Beltway High Occupancy Toll (HOT) Lanes
Alternate Project Name
I-495 HOT Lanes, Capital Beltway HOT Lanes, 495 Express Lanes, 495 NEXT
Project Type
Roads and Bridges
Financing Type
Credit Agreement Executed
Virginia Department of Transportation (VDOT)
Project Description

UPDATE: The original loan was refinanced and additional loan awarded to build 2.5 miles of express toll lanes north of the original 14 miles.

There are currently 14 miles of tolled express lanes (two in each direction) on Interstate 495 (Capital Beltway) in Fairfax County, Virginia. The 495 NEXT will extend the express lanes by 2.5 miles from the Dulles Access Road to the George Washington Memorial Parkway near the state line. 

The Capital Beltway High Occupancy Toll (HOT) Lanes project (officially the 495 Express Lanes) is a public-private partnership (P3) between VDOT and Capital Beltway Express, LLC (a joint venture of Fluor and Transurban). The project extends from the Springfield Interchange (south) to just north of the Dulles Toll Road (14 miles). Previously, the Capital Beltway had four lanes in each direction. Improvements included:

  • 14 miles of two new lanes in each direction
  • First time introduction of High Occupancy Vehicles (HOV) lanes to the Capital Beltway and reliable transit options to the Beltway and Tysons Corner, Virginia
  • Congestion-free network for carpools, vanpools, transit, and toll-paying motorists
  • Replacement of more than $260 million of aging infrastructure, including more than 50 bridges and overpasses
  • Construction of carpool ramps connecting I-95 with the Capital Beltway to create a seamless HOV network

Changes in the composition of the regional economy and shifts in employment patterns over the past 40 years have increased demand for all transportation facilities around the District of Columbia, particularly for roadways such as the Beltway that provide mobility between major suburban employment centers. Given that the last major improvements to the Beltway were completed in 1977, I-495 required substantial upgrades to keep pace with growing demand. According to the project’s website, the HOT lanes have considerably increased capacity, reducing congestion and cutting travel times by an average of 20 minutes per trip.

Project Details
TIFIA Assistance
Primary Revenue Pledge
User Charges
Project Cost
Fiscal Year Closed
495 NEXT is expected to open late 2025/early 2026

The Build America Bureau provided a $1.05 billion low interest loan to Capital Beltway Express, LLC to refinance an existing loan for the Capital Beltway express lanes and construction of a northern extension called the 495 NEXT Project. The Bureau helps communities across the country reduce the costs of infrastructure projects by providing Transportation Infrastructure Finance and Innovation Act loans, known as TIFIA loans, and other types of financing.

There are currently 14 miles of tolled express lanes (two in each direction) on Interstate 495 (Capital Beltway) in Fairfax County, Virginia. The 495 NEXT will extend the express lanes by 2.5 miles from the Dulles Access Road to the George Washington Memorial Parkway near the state line.

Construction began in spring 2008 and reached substantial completion on November 8, 2012. The facility opened to traffic on November 17, 2012.

The total length of the concession is 85 years - five years of construction and 80 years of operation.
Funding Sources
Private Activity Bonds: $589M
TIFIA Loan: $589M
Commonwealth of Virginia Grant: $409M
Private Equity: $351M
Project Delivery/Contract Method
DBFOM (Design-Build-Finance-Operate-Maintain)
Project Participants
Capital Beltway Express, LLC - Joint venture between Fluor and Transurban
Project Advisers/Consultants
Virginia Department of Rail and Public Transportation



TIFIA Legal Advisor: Nixon Peabody, Michael Vaccari and Virginia Wong
TIFIA Financial Advisor: Infrastructure Management Group: Sasha Page
Project Lender
Bondholders, USDOT TIFIA
Credit Assistance Detail
Direct loan: $1.05 Billion.  The TIFIA loan holds a subordinate lien on a pledge of the project's toll revenues and interest income, after operations and maintenance expenses, certain capital expenditures, senior debt service reserve, and debt service payments to senior lenders.
Financial Status
The refinanced loan closed March 2022.

The TIFIA credit agreement was signed in December 2007. TIFIA interest payments began in 2017, and principal repayments are scheduled to begin in 2032; final loan maturity is expected to be reached in 2047.
Fully electronic toll collection using transponder technology
Dynamic tolling based on real-time traffic conditions
First HOT lane implemented in the state of Virginia
Largest financing of a HOT lanes project
First time a Private Activity Bond (PAB) was used for HOT lanes in the U.S. and the first time combined with TIFIA financing
Application Details
Capital Beltway Express, LLC - Transurban US Holding Company and Fluor Lane
LOI Fiscal Year Received
LOI Received Date
Application Received Fiscal Year
Application Received Date
Credit Agreement Executed
Estimated Project Cost
TIFIA Request
Instrument Type
Direct Loan