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United States Department of Transportation United States Department of Transportation

North Tarrant Express (Segments 3A and 3B)

North Tarrant Express (Segments 3A and 3B)
Project Type
Roads and Bridges
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Texas Department of Transportation (TxDOT); NTE Mobility Partners Segments 3, LLC (the Concession Company and TIFIA borrower)
Project Description

As a result of work performed under a predevelopment agreement, a 52-year concession agreement (effective 2009) between TxDOT and NTE Mobility Partners was executed on March 1, 2013 to design, build, finance, operate, and maintain Segment 3A and operate and maintain Segment 3B of the North Tarrant Express (NTE) in the Fort Worth, Texas region. TxDOT will deliver Segment 3B on a design-bid-build basis before turning over operations to NTE Mobility Partners. Together these two segments comprise 12 miles of highway and managed lane improvements to I-35W as part of the overall 36-mile NTE network. NTE Segments 1 and 2A, the first two segments of the six-segment network of managed lanes to be advanced, have been under construction since 2010 under a separate concession agreement with NTE Mobility Partners and include improvements to I-820 (Segment 1) and SH 121/SH 183 (Segment 2A).

Segment 3A includes construction of two managed lanes in each direction and improvements to approximately 6.2 miles of I-35W from north of I-30 near downtown Fort Worth to north of I-820, including the I-35W/I-820 interchange. Existing frontage roads, bridges, overpasses interchanges, and ramps will be reconstructed. The interchange with I-820 at the western extent of Segment 1 will be reconstructed and include direct connectors between the two segments' managed lane components. Segment 3B includes construction of two managed lanes in each direction and improvements to approximately 4.0 miles of I-35W from north of I-820 (joining Segment 3A) to north of US 81/287.

According to the project sponsor, Segments 3A and 3B of the North Tarrant Expressway Project will ease congestion for approximately 50,000 vehicle trips per day, resulting in approximately 37,671 hours saved per day and an estimated 154 million gallons of fuel saved. Additionally, the project is expected to generate approximately 38,000 jobs and yield approximately $7.8 billion in total economic impact over the construction period.

Project Details
TIFIA Assistance
$531.00M
Primary Revenue Pledge
User Charges
Project Cost
$1637.00M
Fiscal Year Closed
FY2013
Duration/Status
Commercial close (Comprehensive Development Agreement [CDA] execution) occurred on March 1, 2013. Construction on Segment 3A began in Spring 2014, with substantial completion expected in 2018. Construction on Segment 3B began in Spring 2013, with substantial completion expected in 2017.
Funding Sources
Segment 3A
Private Activity Bond Proceeds: $274M
TIFIA Loan: $531M
Public Funds: $308.5M (Includes Federal & State funds)
Interest income: $5.7M
Equity: $418.3M               
Segment 3B
Proposition 12 Bond Proceeds: $100M
Project Delivery/Contract Method
Segment 3A: DBFOM (Design-Build-Finance-Operate-Maintain); Segment 3B: Design-bid-build (O&M includes as part of concession)
Project Participants
Cintra Infraestructuras, S.A. - NTE Mobility Partners Segments 3, LLC (the Concession Company); Meridiam Infrastructure - NTE Mobility Partners Segments 3, LLC (the Concession Company); Dallas Police and Fire Pension System - NTE Mobility Partners Segment
Project Advisers/Consultants
To the Public Sector Sponsor:

Financial Advisor to TxDOT: KPMG
Legal Advisor to TxDOT: Nossaman LLP
Bond Counsel: McCall, Parkhurst & Horton LLP
To the Borrower:

Counsel to the Concession Company: Gibson Dunn & Crutcher LLP
Counsel to the Concession Company: Bracewell & Giuliani LLP
Traffic Consultant: AECOM Enterprises
Lenders' Traffic Advisor: Hatch Mott MacDonald
Independent Engineer: SAM - Construction Services, Inc.
To USDOT TIFIA JPO:

TIFIA Legal Advisor: Hawkins Delafield & Wood LLP
TIFIA Financial Advisor: Taylor-DeJongh
Project Lender
Bondholders; USDOT TIFIA
Credit Assistance Detail
Direct loan: $531 million.  The TIFIA loan will be repaid with project revenues, which include all income, tolls, revenues, rates, fees, charges, rentals, or other receipts related to the operation of the project.
Financial Status
The TIFIA credit agreement was executed in September 2013A Interest payments are set to begin in 2023 and principal payments expected to start in 2038; final loan maturity is expected to occur in 2053.
Innovations
With the Project, the IH 35W corridor will become a "Smart Corridor", using active traffic management technology to dynamically control traffic based on real-time roadway conditions, to provide information to the traveling public, to improve transit travel times, and allow transportation and law enforcement officials to better detect and respond to incidents in a timely manner. The technology will provide real-time information for congestion pricing in the managed lanes to maintain 50 mph travel.
This is the third transportation infrastructure project in the US to reach financial close with direct investment by a pension fund.
Application Details
Applicant
Texas Department of Transportation (TxDOT)
LOI Fiscal Year Received
FY2012
LOI Received Date
Estimated Project Cost
$1499.00M
TIFIA Request
$537.00M
Instrument Type
Direct Loan