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Central Texas Turnpike System

Central Texas Turnpike
Project Type: 
Roadways and Bridges
Sponsor / Borrower: 
Texas Department of Transportation (TxDOT)
Credit Agreement Status: 
TIFIA Assistance: 
$900 million
Primary Revenue Pledge: 
User Charges
Project Cost Details: 

$3.250 billion

Duration / Status: 

All project elements opened between November 2006 and April 2008.

Fiscal Year Closed: 
Project Description: 

When the TIFIA loan closed, the Central Texas Turnpike System (CTTS) consisted of three contiguous toll highways serving the Austin metropolitan region and the Austin-San Antonio corridor:

  • SH 45 North - 13 miles, four to six lanes, from Ridgeline Boulevard west of U.S. 183 eastward to SH 130
  • Loop 1 - a northward extension of the existing Loop 1 (Mopac Expressway), three miles from Parmer Lane to SH 45 North
  • SH 130 (Segments 1-4) - a 49-mile, four-lane tollway extending north-south through Williamson and Travis Counties, extending from I-35 north of Georgetown to U.S. 183 southeast of Austin

SH 130 (Segments 1-4) was procured through Texas' first application of its Exclusive Development Agreement (later Comprehensive Development Agreement) provision, contractual arrangements equivalent to public-private partnerships. In this case, a design-build contract was used to accelerate completion.

SH 130 is 91 miles in total length extending further south and west to I-10. Segments 5 and 6 were constructed under a separate DBFOM (design, build, finance, operate, and maintain) procurement. In August 2012, State Highway 45 Southeast (SH 45 SE) was added to CTTS. Service commenced on November 11, 2012.

Funding Sources: 
  • First Tier Revenue Bonds: $1.358B
  • TIFIA Loan: $900M (used to retired Bond Anticipation Notes [BANs] in 2007 and 2008)
  • State Funding: $520.1M
  • Local Contributions / Commission Funds for ROW: $286.5M
  • Interest Earnings: $185.2M
Project Delivery / Contract Method: 

SH 45 North and Loop 1 used Design-Bid-Build; SH 130 (Segments 1-4) was Design-Build.

Project Participants: 
Lone Star Infrastructure (joint venture of Fluor Corporation, Balfour Beatty Construction and T.J. Lambrecht Co) - SH 130 (Segments 1-4)
Project Advisors / Consultants: 

HDR - Program management


Stantec Consulting Services, Inc. - Traffic & Revenue

McCall, Parkhurst & Horton, LLP - Bond counsel

RBC Capital Markets Corp. - Financial advisor

The Bank of New York Mellon Trust - Trustee


  • TIFIA Legal Advisor: Ballard Spahr Andrews & Ingersoll, LLP
  • TIFIA Financial Advisor: Montague DeRose and Associates, LLC/TransTech Management, Inc.
Project Lender(s): 
Bondholders, USDOT TIFIA
TIFIA Credit Assistance Detail: 

Direct loan: up to $917M; TxDOT only requested $900M. The DOT had a subordinate lien on gross revenues (i.e., prior to operations and maintenance costs) and the trust estate.

Financial Status: 
The TIFIA credit agreement was signed on July 25, 2002. Of the approximately $2.2B in capital market debt, $900M was issued as low interest BANs maturing in 2007 and 2008. In June 2007, TxDOT used its first draw of TIFIA loan proceeds in the amount of $124.930M to retire the 2007 BANs, and subsequently retired $775.07M in 2008 BANs with a second draw of TIFIA loan proceeds in June 2008. TIFIA interest payments began in February 2010. On February 15, 2015, the Texas Transportation Commission repaid its $900M TIFIA loan. The project’s strong performance facilitated a refinancing to pay off the TIFIA loan 27 years ahead of schedule.
  • Use of innovative financing and a fixed-price, lump-sum design-build contract for SH 130 delivered the CTTS components 25 years sooner than conventional pay-as-you-go financing would have delivered.
  • Components were delivered ahead of schedule and less than the original 2002 cost estimate.
Project Contacts: 

Benjamin Asher 
Officer of Innovative Financing/Debt Management 
125 E. 11th Street 
Austin, TX 78701 
Tel: (512) 463-8611

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