Tamara Rollison 804-786-2715
Shannon Marshall 804-371-6844
Sept. 5, 2012
COMMONWEALTH MOVES FORWARD ON U.S. ROUTE 460 CORRIDOR IMPROVEMENTS PROJECT IN SOUTHEASTERN VIRGINIA
Latest project documents posted online this week
RICHMOND — The commonwealth released this week a detailed financial structure to design, build and finance a new Route 460 that would stretch 55 miles from Prince George County to the city of Suffolk and includes seven interchanges to provide access to local communities along the corridor. The new road would be financed through a combination of public dollars and tolls, while the existing Route 460 remains free.
“Route 460 is on track to begin construction next year,” said Virginia Department of Transportation (VDOT) Commissioner Greg Whirley. “VDOT continues to conduct business in a transparent manner by making publicly available the latest contract documents to select a partner and bring the project to construction. The new Route 460 will bring tremendous benefits to Virginia including safety improvements, a faster hurricane evacuation route, significant job and business opportunities as well as greatly enhanced movement for trucks coming from the Port of Virginia and better connectivity for the military.”
VDOT, in coordination with the Office of Transportation Public-Private Partnerships, is procuring the project under Virginia’s Public-Private Transportation Act, which allows VDOT to partner with the private sector to finance, design and build transportation improvements.
Three teams are in competition for the project: Cintra Infraestructuras S.A.U., 460 Partners, Inc. and Multimodal Solutions. They are preparing detailed proposals, which are due in early October.
Earlier this year, VDOT and the private sector teams determined an addendum to the request for proposals was needed regarding the financial structure so the project could move forward. An addendum was issued last May to set a new financial structure.
Since May, the addendum has been refined to include more details related to the financial structure, the risk allocation and obligations of the three parties.
Key components of the addendum – posted online as the Final Draft Request for Detailed Proposals - include:
- The commonwealth would retain ownership of the facility and all potential benefits of the project.
- A not-for-profit corporation (Route 460 Corridor Funding Corporation of Virginia) will contract with the design-builder and be responsible for the repayment of the tax-exempt debt used to reduce the commonwealth’s contribution
- The commonwealth will set the tolls and escalation of the tolls over the life of the project, which will be used to pay for the cost of the construction and development of the roadway and toll facilities
- The private sector design-builder would take the risk of designing and building the project at a fixed cost and fixed date. The private sector is required to submit a financial proposal identifying the tax-exempt debt that will be transferred to the Route 460 Corridor Funding Corporation. The debt would be non-recourse to the commonwealth.
In August, the commonwealth applied for a $400 million low-interest federal loan from the Transportation Infrastructure Finance and Investment Act (TIFIA) program. The federal loan would be used to further reduce the commonwealth’s subsidy.
Financial proposals for the project are due on Oct. 8, 2012, with a final contract scheduled to be reached by the end of 2012. Construction and acquisition of right of way would then begin in 2013 with the new Route 460 scheduled to open in 2018.
Final Draft Request for Detailed Proposals – Posted Sept. 4, 2012
Request for Detailed Proposals – Instructions to Offerors http://www.route460ppta.org/documents/rfdp/Part_1_-_Instructions_to_Offerors.pdf
Comprehensive Agreement http://www.route460ppta.org/documents/rfdp/Comprehensive_Agreement.pdf
Visit www.route460ppta.org to access more project information.
Information in VDOT news releases was accurate at the time the release was published. For the most current information about projects or programs, please visit the project or program Web pages. You may find those by searching by keyword in the search Virginia DOT box above.