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United States Department of Transportation United States Department of Transportation

I-595 Corridor Roadway Improvements

I-595
Alternate Project Name
I-595
Project Type
Roads and Bridges
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Florida Department of Transportation (FDOT), I-595 Express, LLC
Project Description

The I-595 Corridor Roadway Improvements project consists of the reconstruction and widening of the I-595 mainline and all associated improvements to frontage roads and ramps from the I-75/Sawgrass Expressway interchange to the I-595/I-95 interchange, for a total project length of approximately 10.5 miles. The project passes through, or lies immediately adjacent to, six jurisdictions: City of Sunrise; Town of Davie; City of Plantation; City of Fort Lauderdale; Town of Dania; and unincorporated areas of Broward County.

A major component of the project is the construction of three at-grade reversible express toll lanes to be known as 595 Express, serving express traffic to/from the I-75/Sawgrass Expressway from/to east of SR 7, with a direct connection to the median of Florida's Turnpike. These lanes will be operated as managed lanes with variable tolls to optimize traffic flow, and will reverse directions in peak travel times (eastbound in the AM and westbound in the PM). The public-private partnership (P3) is between FDOT and a private concessionaire to design, build, finance, operate, and maintain the roadway for a 35-year term. FDOT will provide management oversight of the contract; will install, test, operate and maintain all tolling equipment for the express lanes; and will set the toll rates and retain the toll revenue.

According to the project sponsor, I-595 serves more than 180,000 vehicles per day, and that number is expected to grow beyond 300,000 by 2034. As it is currently the only east-west highway in Broward County, significant capacity improvements are needed to keep pace with growing demand. The utilization of TIFIA financing and P3 structuring allows for project delivery 15 years sooner and with approximately $394 million in financing cost savings compared to more conventional delivery mechanisms.

Project Details
TIFIA Assistance
$603.00M
Primary Revenue Pledge
Toll Revenues
Project Cost
$1834.00M
Fiscal Year Closed
FY2009
Duration/Status
Construction began in June 2009; substantial completion was achieved on March 14, 2014.
Funding Sources
Concessionaire’s Financing Sources for Repayment
Senior Bank Debt: $781M (backed by final acceptance/availability payments)
TIFIA Loan: $603M + capitalized interest (backed by final acceptance/availability payments)
Equity: $207.7M
Revenues: $10M
FDOT Qualifying Development Funds: $232M
In addition to the funding sources above, State and Federal Resources support FDOT's final acceptance payments ($686M) and availability payments ($65.9M annual Maximum Availability Payment in 2009 dollars) made to the concessionaire.
Project Delivery/Contract Method
DBFOM (Design-Build-Finance-Operate-Maintain)

Project Participants
I-595 Express, LLC (ACS Infrastructure Development and TIAA CREF (50/50 split of the equity portion on loan)) as Concessionaire, Dragados USA Inc. - Design-build contractor, AECOM Technical Services, Inc. - Lead engineering firm, HNTB Corp - Construction
Project Advisers/Consultants
To Sponsor:

Dewey & LeBoeuf LLP - legal
Macquarie Capital (USA) Inc. - financial
Scott Wilson, Plc. - technical
To Lender:

Simpson Thacher & Bartlett LLP - legal
To Authority:

Nossaman LLP - legal
Jeffrey A. Parker & Associates, Inc. - financial
Reynolds, Smith and Hills, Inc. - technical
The Corradino Group - construction oversight
To USDOT TIFIA JPO:

TIFIA Legal Advisor: Hawkins Delafield & Wood LLP
TIFIA Financial Advisor: Taylor-DeJongh
Project Lender
12-Bank Club (senior bank debt), USDOT TIFIA
Credit Assistance Detail
Direct loan: $603.441 million; TIFIA has a subordinate lien on availability payments made by FDOT to I-595 Express, LLC.
Financial Status
The TIFIA loan agreement was executed in March 2009. Interest payments began in December 2014. Principal repayments are scheduled to begin in 2031. The final maturity of the TIFIA loan is expected to be in 2047.
Innovations
First U.S. application of availability payments to a transportation project.
I-595 Express, LLC will receive no compensation from FDOT until the facility is fully operational. Upon FDOT's final acceptance of the project construction, I-595 Express, LLC will be eligible to receive a series of annual lump sum final acceptance payments, including potential incentive bonuses for completing a series of interim milestones (related to major construction activities) within established contractual deadlines.
Performance-based availability payments will be made monthly during the operating period of the project. A maximum availability payment of $65.9 million (in 2009 dollars) begins in 2014 and escalates annually. If quality and performance requirements stipulated in the contract as well as availability of the roadways to traffic are not met, then the availability payments will be subject to downward adjustment in accordance with the contract.
Application Details
Applicant
Florida Department of Transportation
LOI Fiscal Year Received
FY2008
Application Received Fiscal Year
FY2008
Estimated Project Cost
$1822.00M
TIFIA Request
$598.00M
Instrument Type
Direct Loan