New York Bridge P3 reaches financial close

Financial close has been reached on New York’s $1.5bn Goethals Bridge P3.

The deal between the Port Authority of New York and New Jersey (PANYNJ) and the NYNJ Link Partnership has now been rubber-stamped and will be financed with a combination of $461m in tax-exempt bonds, a $474m loan, and equity contributions from the developers.

Also as part of the deal, the consortium will be paid back throughout 35 years, with interest from the Port Authority. PANYNJ will still be responsible for collecting the tolls on the bridge.

The payment amounts will depend upon the performance of the consortium throughout the concession period.

PANYNJ selected the team – made up of Macquarie Infrastructure and Real Assets Inc., Kiewit Development and lead contractors Kiewit Infrastructure, Weeks Marine and Massman Construction – as preferred bidder to design, build, finance and maintain the new bridge in April.

It had been feared that the deal could be delayed over issues surrounding permit delays in September, but the project is now expected to be complete by 2016.