US highway reaches close

The state of Virginia has reached commercial close on the US 460 Highway P3.

Virginia’s Department of Transportation (VDOT) achieved financial close with US 460 Mobility Partners, a consortium consisting of Ferrovial Agroman, American Infrastructure and Cintra Infraestructura, for the 55-mile section of Highway 460 in south eastern Virginia.

Valued at $1.4bn, the highway P3 will receive approximately $1.1bn from public sources, with the remaining costs coming from the consortium, as well as the design and build aspects of the project.

Public funding from VDOT equates to $903m, however a lower amount is expected should the state secure a low-interest federal loan through the Transportation Infrastructure Financing and Innovation Act (TIFIA) programme. Virginia’s port authority will contribute $250m, with a possible lower amount pending a TIFIA loan. The private sector is expected to provide close to $250m through tax-exempt bonds.

The project will produce a four-lane highway from Prince George County to Suffolk, operated under a toll road system, saving at least 20 minutes for commuters when compared to the original US 460. The existing 460 highway will run parallel to the toll road, and will remain a free alternative.