We are proud to be recognized by transport and finance advocates for deploying innovative tools to deliver billions of dollars in transformative infrastructure improvements in Northern Virginia.
The U.S., like many countries, is struggling to rebuild its aging and overburdened transportation network. While federal policy has stalled in delivering a solution to chip away at a $4.5 trillion infrastructure investment backlog, many states are advancing bold agendas – recognizing the power in partnerships with the private sector. In partnering with Transurban, Virginia is unlocking $4 billion in modern, congestion-relieving infrastructure on the Express Lanes – a network that continues to be delivered with innovative financing tools that complement our long-term equity commitment.
Our latest extensions of the Express Lanes on I-395 and the I-95 Fredericksburg extension have put to work Private Activity Bonds (PABs) that are increasingly the cornerstone of the transportation PPP industry. PABs allows municipal bond investors to finance transportation projects that result in a benefit to the public. Since 2005, $12.0 billion in PABs have advanced highway, transit and intermodal projects across the U.S., stimulating multiple times that amount in economic activity. Without the valuable low cost and flexible financing structure of PABs, many transport projects would likely not be possible.
As financing tools like PABs continue to drive the modernization of our transport systems and the long-term competitiveness of the U.S. economy, we are honoured to be recognized as leaders in the deployment of these tools to deliver game changing infrastructure:
- Bond Buyer Deal of Year Award for the financing of the Fredericksburg Extension:
$262 million in Senior Lien Revenue Bonds were critical to advancing the 10-mile (16-km) extension of the 95 Express Lanes that tackle one of the worst traffic hot spots in the U.S. The Deal of the Year award is recognition for the project’s local support, benefit to the region, innovative structuring and highly successful execution.
- International Bridge, Tunnel and Turnpike Association (IBTTA) Toll Excellence Award for Administration and Finance of the 395 Express Lanes:
$232 million in Senior Lien Revenue Bonds helped deliver the 395 Express Lanes. The on-time and on-budget project is creating new travel choices along one of the most vibrant economic corridors in Virginia. The IBTTA award recognizes the best international projects and programs in the industry. The award acknowledges the innovative financing structure that incorporated a Virginia Resources Authority loan while creating a unified credit to build upon the operational success of the 95 segment, resulting in a rating agency upgrade.
As governments in the U.S. look to increase the volume and breadth of projects delivered as PPPs, we continue to champion for the strengthening of PABs and other innovative financing tools like Transportation Infrastructure Finance and Innovation Act (TIFIA) to ensure U.S. infrastructure continues to be renewed.