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United States Department of Transportation United States Department of Transportation

North Tarrant Express Segments 1 and 2A

North Tarrant Express Segments 1 and 2A
Alternate Project Name
NTE
Project Type
Roads and Bridges
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Texas Department of Transportation (TxDOT) ; NTE Mobility Partners, LLC (the Concession Company and TIFIA borrower)
Project Description

The first Concession CDA includes the design, development, construction, finance, maintenance, and operation of 13 miles along Interstate (IH) 820 (Segment 1) and State Highway (SH) 121/SH 183 from IH 35W to SH 121, from north of Fort Worth to just southwest of Dallas-Fort Worth International Airport (Segment 2A). The duration of the concession is 52 years.  The existing highway includes two general purpose lanes in each direction. Proposed improvements include three general purpose lanes in each direction with two managed lanes in each direction for a total of 10 lanes with frontage roads for future traffic volumes.

The second CDA for Segments 2-4 includes developing master plans for the remainder of the corridors along SH 183 from SH 121 to SH 161 (Segment 2E), IH 820 east from SH 121/SH 183 south to Randol Mill Road (Segment 4), and along IH 35W from IH 30 to SH 170 in Tarrant and Dallas counties (Segments 3A, 3B, and 3C), as well as other facilities for connectivity, safety, and financing.

As a result of the master planning activities, TxDOT and the concessionaire entered into a Facility Agreement to construct Segment 3A and operate and maintain this segment as well as Segment 3B, which is being constructed by TxDOT. When all phases are completed, the Project will comprise 36 miles of managed lanes.

Segments 1 and 2 of the North Tarrant Expressway project will add general purpose lanes, managed lanes and frontage roads to increase capacity and reduce congestion. Further, the managed lanes leverage an electronic toll collection system to prevent bottlenecking at collection points, reducing potential collisions from sudden stoppages. Based on information from the Project Sponsor, the use of TIFIA financing allowed for the realization of these benefits 6 years sooner and at a cost approximately $510 million lower than conventional financing methods would have allowed.

Project Details
TIFIA Assistance
$650.00M
Primary Revenue Pledge
User Charges
Fiscal Year Closed
FY2010
Duration/Status
Commercial close (Comprehensive Development Agreements [CDA] execution) occurred on June 23, 2009. Construction began in October 2010, and substantial completion reached was on October 4, 2014.
Funding Sources
Private Activity Bond Proceeds: $398M
TIFIA Loan: $650M
Public Funds: $573M
Equity Contribution: $426M
Project Delivery/Contract Method
DBFOM (Design-Build-Finance-Operate-Maintain)
Project Participants
NTE Mobility Partners, LLC (the Concession Company): Cintra Concesiones de Infraestructuras de Transporte, S.A. Meridiam Infrastructure Dallas Police and Fire Pension System; Other Private Partners: Ferrovial Agromán S.A. W.W. Webber, LLC Earth Tech, Inc.
Project Advisers/Consultants
To the Borrower:

Financial Advisor: J.P. Morgan Securities, Inc.
Financial Advisor: Macquarie Capital (USA) Inc.
Counsel to the Concession Company: White & Case LLP
Counsel to the Concession Company: Bracewell & Giuliani LLP
Sponsor's Traffic Consultant: AECOM Enterprises
Lenders' Traffic Advisor: Hatch Mott MacDonald
Independent Engineer: CH2M Hill, Inc.
To USDOT TIFIA JPO

TIFIA Legal Advisor: Hawkins Delafield & Wood, LLP
TIFIA Financial Advisor: Montague DeRose and Associates, LLP/High Street Consulting Group, LLC
Project Lender
Bondholders, USDOT TIFIA
Credit Assistance Detail
Direct loan: $650 million. The TIFIA loan will be repaid with project revenues, which include all income, tolls, revenues, rates, fees, charges, rentals, or other receipts derived by or related to the operation of the Project.
Financial Status
The TIFIA credit agreement was executed in December 2009. Interest payments are set to begin in 2019 and principal payments are anticipated to start in 2034; final loan maturity expected to occur in 2049.
Innovations
When completed, this project will have a state-of-the-art electronic toll collection system with open architecture, ensuring a seamless, free flow operation of the managed lanes.
Innovative financing package including PABs and TIFIA credit assistance. Only the second PABs issuance ever under the $15 billion of authority provided to DOT by SAFETEA-LU.
The first transportation infrastructure project in the US to reach financial close with direct investment by a pension fund.
Application Details
Applicant
Texas Department of Transportation
LOI Fiscal Year Received
FY2008
LOI Received Date
Application Received Fiscal Year
FY2008
Application Received Date
Estimated Project Cost
$802.00M
TIFIA Request
$59.00M
Instrument Type
Direct Loan