Florida DOT Chooses PPP for $2.3 Billion Interstate Project, Moves Project Forward

AASHTO Journal, 25 April 2014

The Florida Department of Transportation announced this week the company it will work with through a public private partnership to deliver a major interstate project vital to Orange and Seminole Counties.

A Notice of Intent to Award was released by FDOT naming I-4 Mobility Partners as the successful bid for the I-4 Ultimate project. Once the commercial and financial close is finalized, expected “later this summer,” I-4 Mobility Partners will be responsible for designing, constructing, financing, operating, and maintaining the project for 40 years under a concession agreement.

The I-4 Ultimate project will reconstruct 21 miles of the interstate from Kirkman Road in Orange County to State Road 434 in Seminole County. The project also includes the addition of four tolled express lanes to I-4 (and preserving/maintaining the current free general use lanes), with the toll rates set and revenue retained by FDOT. Additional project elements include auxiliary and turn lanes, pedestrian bridges, and “enhanced aesthetics along the facility.”

“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,” said FDOT Secretary Ananth Prasad in a statement. “This benefits Central Florida residents, commuters, and visitors.”

Through the agreement, I-4 Mobility Partners earns “availability” payments from FDOT once it hits performance standards previously set. The arrangement is beneficial for FDOT, as the partnership transfers cost overrun risks to the private sector.

FDOT officials said project construction would begin in 2015, with completion expected in 2021.

Additional information on the I-4 Ultimate project is available here.

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