AASHTO Journal - USDOT Issues Record $3.9B Loan to Georgia DOT

The U.S. Department of Transportation recently issued a loan of up to $3.89 billion from its Build America Bureau to a public-private partnership or P3 express lane project spearheaded by the Georgia Department of Transportation.

[Above image by the Georgia DOT]

That project seeks to add new express lanes in both directions along a 16-mile section of State Route 400 near Atlanta to reduce traffic, enhance safety, and improve connectivity.

This P3 – which also involves the State Road and Tollway Authority (SRTA) and SR 400 Peach Partners – will connect the Metropolitan Atlanta Rapid Transit Authority (MARTA) North Springs Station to one mile north of McFarland Parkway. While facilitating current MARTA and XPress bus connections, Peach Partners will also provide $75 million in future bus rapid transit or BRT related improvements; with MARTA slated to operate this future BRT system, which is expected to share the express lanes for approximately 12 miles.

The project also calls for Peach Partners to provide a $3.8 billion concession fee to Georgia DOT that can help fund other roadway projects as part of the P3 agreement to design, build, finance, operate, and maintain the express lanes.

Overall, the SR 400 Express Lane project is expected to reduce traffic delays by over 19,000 hours each day, or about 15 minutes per traveler, due to less idling and traffic congestion.

It will also enhance public safety through the construction of new bridges and other safety improvements, the replacement or widening of several existing bridges, and will reduce traffic incidents by an estimated 8 percent, USDOT said – stressing that the new express lanes will be tolled using dynamic congestion pricing to manage demand and maintain reliable trip times, while current lanes remain free of charge to use.

“This partnership is a perfect example of how, when the public and private sectors work together, we can provide communities with the most effective and cost-efficient solutions while reducing the need for public funding,” said Morteza Farajian, executive director of USDOT’s Build America Bureau, in a statement.

“Georgia’s innovative approach has allowed them to leverage our low-interest financing with the developer’s investments to provide more benefits for the Atlanta community,” he added. “[This project is] a win for everyone that would not be otherwise possible.”

“Georgia’s logistics and transportation network is a major selling point to job creators, and this approved financing will both boost our competitive edge and make it easier for hardworking Georgians to commute,” added Governor Brian Kemp (R). “We are excited to celebrate Georgia being home to the largest public-private partnership in USDOT history.”

“Securing TIFIA federal credit assistance is an essential milestone for the SR 400 Express Lanes project,” said SR 400 Peach Partners CEO Javier Gutierrez. “Thanks to this loan, this critical project will become a reality, improving safety and mobility in the greater Atlanta metro area for generations to come.”