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Ferrovial-led consortium to extend the North Tarrant Express in Texas
Construction & Maintenance News
September 2013
Ferrovial, through a consortium led by subsidiary Cintra Infraestructuras, has achieved financial close for the concession to extend the North Tarrant Express in Texas (US). Investment is estimated at 1.35 billion dollars (around 1.01 billion euro). NTE Mobility Partners Segments 3 LLC, the consortium led by Cintra, also includes Meridiam Infrastructure, Dallas Police and Fire Pension System and APG.
The project will be financed with a combination of public and private funds: 531 million dollars from a federal TIFIA loan (Transportation Infrastructure Finance and Innovation Act); 127 million dollars from the Texas Department of Transportation (TxDOT); 274 million dollars in Private Activity Bonds (PABs), maturing in 25 and 30 years (which were 2.5 and 4 times oversubscribed respectively); and 430 million dollars in equity.
This operation again highlights Cintra's capacity to issue debt in the capital markets. Enrique Díaz-Rato, CEO of Cintra: "We are very pleased to have successfully attained financial close for this project. We have achieved an efficient capital structure despite the complex economic situation at present. We are looking forward to commencing a project that will bring growth and employment to the region, as well as great benefits to citizens".
The operation also evidences investor appetite for managed lanes projects. Managed lanes are currently the most advanced, safest and most reliable form of tolling. This totally electronic barrier-free system does not require vehicles to stop, and tolls are set dynamically on the basis of demand.
The construction of segment 3A, measuring 6.5 miles (10.5 kilometres), is part of the project to rebuild and expand one of the most important corridors in the Dallas/Fort Worth area, the fifth-largest metropolitan area in the United States and one of the fastest-growing conurbations in the country.
The Cintra-led consortium will upgrade the existing lanes, which will be toll-free, and build two additional managed lanes each way which will use electronic tolling; the consortium will also handle operation and maintenance of the entire roadway, which includes a second section, 3B, measuring 3.6 miles (5.8 kilometres) built by TxDOT. The 43-year concession will start from the date the highway opens to traffic, which is scheduled for mid-2018.