The US Department of Transportation (USDOT) last week approved a USD 422M loan for credit assistance for the Midtown Tunnel project.
The Midtown Tunnel project has been valued at an estimated USD 2.1bn and will construct a second Midtown Tunnel parallel to the existing one. Rehabilitation of the existing tunnel and two downtown tunnels will also be carried out.
The loan is part of the DOT’s ‘Infrastructure Finance Innovation Act’. The idea is to reduce future tolls by lowering project finance costs with flexible terms.
The Virginia Department of Transportation (VDOT) entered into a PPP with Elizabeth River Crossings Opco (ERC), which will be responsible for the financing, design, construction, tolling and ongoing operations and maintenance of the project for the 58-year concession. VDOT will be sole owner of the project.
Transportation Secretary Ray LaHood said, “President Obama has called on us to invest in transportation systems that are built to last. Virginia is doing just that by investing in this key infrastructure project that will create jobs, reduce commute times and support our economic competitiveness.”
Federal Highway Administrator Victor Mendez added, “This much-needed transportation investment will provide jobs in the immediate future to help make the area more productive and contribute to economic growth. In addition, the project will bring congestion relief and help businesses provide better service to their customers.”
