The Florida Department of Transportation (FDOT) has selected I-4 Mobility Partners as the best value proposer to design, build, finance, operate and maintain the project known as the I-4 Ultimate through a 40-year public-private partnership (P3) concession agreement at a total design and construction cost of $2.32 billion. This cost is approximately $860 million less than the highest proposal received by FDOT. Commercial and financial close is expected to occur later this summer.
FDOT Secretary Ananth Prasad said, “The use of a public-private partnership for the I-4 Ultimate project will help us deliver these improvements 20 years sooner than using conventional methods. This benefits central Florida residents, commuters and visitors.”
The members of the I-4 Mobility Partners team include the following:
- Skanska Infrastructure Development Inc.;
- John Laing Investments Limited,
- Construction Joint Venture – Skanska USA Civil Southeast Inc., Granite Construction Co. and the Lane Construction Corp.;
- Design Joint Venture – HDR Engineering Inc. and Jacobs Engineering Group Inc.; and
- Infrastructure Corp. of America.
The project includes the reconstruction of 21 miles of I-4 from west of Kirkman Road in Orange County to east of S.R. 434 in Seminole County. The I-4 Ultimate project adds four tolled express lanes to I-4 while maintaining the existing free general-use lanes, providing a choice to motorists. The express lanes will be operated with variable tolls which will be adjusted to improve traffic flow throughout the corridor. FDOT will retain the toll revenue and will control the toll rates.
The I-4 Mobility Partners team provided FDOT with additional technical enhancements in its proposal that included direct connections from I-4 express lanes to S.R. 408, capacity improvements in the form of additional auxiliary lanes and turn lanes, pedestrian bridges and enhanced aesthetics along the facility. Construction is expected to begin in 2015 and be completed in 2021.
The I-4 Ultimate project is being procured by FDOT as a P3. The concession agreement sets the concessionaire’s responsibility to design, build, finance, operate and maintain the facility for approximately 40 years. Under the concession agreement, the concessionaire earns “availability” payments from FDOT upon meeting set performance standards to keep the facility open and maintained for travelers. Benefits of P3s include transferring cost overrun risks for construction and long-term upkeep of the facility to the private sector. Large, complex projects can be combined and accelerated using the P3 approach, advancing the benefits of the project to the public sooner than traditional methods.
I-4 Mobility Partners was one of four teams submitting proposals on this project.