Tennessee Governor Bill Lee (R) announced on August 19 that the Transportation Modernization Board or TMB approved the selection of DriveTN to be the private-sector partner for the Tennessee Department of Transportation to deliver the I-24 Southeast Choice Lanes project, potentially America’s largest public-private partnership or P3 concession for a highway project to date.
[Above photo by the Tennessee Governor’s Office ]
The governor’s office noted that the I-24 Southeast Choice Lanes project will add new, optional managed lanes or “Choice Lanes” in each direction along approximately 26 miles of I-24 between Nashville and I-840. Existing general-purpose lanes will remain available, while the new Choice Lanes will provide drivers with an optional managed lane alternative with shorter and reliable travel times for a fee.
Under the proposed partnership, DriveTN will design, build, finance, operate, and maintain the $9.2 billion project, while providing a projected $24.8 billion in concession value to Tennessee over a 50-year period, which may be leveraged to fund additional transportation infrastructure projects in the state’s busiest corridors.
The proposal also includes enhanced access and connectivity throughout the corridor, commitments for park-and-ride facilities, and commitments supporting future transit integration.
DriveTN is a coalition of private sector firms that includes Cintra, Transurban, Tikehau Star/Infra/Capital, Ferrovial, Webber, and AECOM. With the TMB’s approval, Tennessee DOT will work with DriveTN and the U.S. Department of Transportation’s Build America Bureau to finalize an agreement that protects Tennessee’s interests and secures the proposed value.
“When we set out to modernize transportation infrastructure in Tennessee, we knew incremental change would not be enough to meet the demands of one of the fastest-growing states in America,” said Gov. Lee in a statement; a reference to the Transportation Modernization Act signed by the governor in 2023.
“Through [that legislation], we chose to embrace innovation and private sector partnership while responsibly stewarding taxpayer dollars,” he added. And now “that vision is delivering extraordinary value for Tennesseans that will deliver a transformational Choice Lanes project and strengthen our infrastructure for generations to come,” the governor noted.
Additionally, Gov. Lee signed Executive Order 114, establishing the Tennessee Strategic Transportation Accountability Council or STAC to provide transparent and accountable oversight of P3 revenues and advise state leaders on how those resources can deliver long-term transportation benefits
“[We were] ready for this opportunity,” said Will Reid, commissioner of the Tennessee DOT. “We did the planning, developed the project, listened to communities, and challenged the private sector to bring Tennessee its best solution. We have moved from facing a critical transportation need without a viable path forward to an opportunity that will deliver the project, enhance communities, and improve travel. Our responsibility now is to verify the commitments, complete the required reviews, finalize the agreement, and deliver as promised.”
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