NTE Mobility Partners announced Thursday that it achieved financial close for the construction and operation of segments of the North Tarrant Express (NTE) ahead of schedule. The 13-mile project involves a serious of improvements primarily along Interstate 820 and portions of State Highway 121/183. Construction on the project is expected to begin in late 2010 with proposed completion in 2015.

The NTE project will improve highway efficiency by improving existing lanes and reconstructing interchanges as well as creating managed toll lanes, offering drivers the choice to bypass congestion on general purpose lanes. 
 

The $2 billion investment by NTE Mobility Partners will be financed through a combination of public and private funds including $427 million in private equity, $400 million in unwrapped private activity bonds, $573 million from TxDOT funds, and a $650 million TIFIA loan from the U.S. government. The NTE project is the “first U.S. pension fund to invest directly in the construction and maintenance of a major infrastructure project,” according to Richard Tettamant, Administrator for the Dallas Police and Fire Pension System.

The NTE Mobility Partners team, the firm in charge of the project, is led by Cintra US and also includes Meridiam Infrastructure, the Dallas Police and Fire Pension System, and W.W. Webber, LLC.

“The combination of public and private financing for critical transportation infrastructure allows projects like NTE to be constructed decades earlier than they would have otherwise,” said Joe Aiello, senior investment director for Meridiam Infrastructure, in a NTEMP/Cintra US press release. “While other transportation and critical infrastructure projects in the U.S. remain in the planning stages, NTE is moving ahead with plans to provide long-overdue traffic relief in a region that continues to experience tremendous growth.”

This project illustrates the advantages of public-private partnerships, which allow governments to significantly leverage limited tax dollars to the greatest benefit of the local citizens – in this case, the partnership allows the state to create $2 billion in roadway benefits, nearly four times the state's actual investment. Other benefits include new job creation, greater roadway choices for drivers and better traffic flow relieving carbon footprint.

The 52-year concession agreement with the state of Texas allows the state to retain ownership of the roadway. Cintra will maintain the road for the duration of the contract in return for the right to collect the toll revenues. At the end of the term, TxDOT will assume responsibility for the operation and maintenance of the roadway.

For more information on the NTE project, click the links below:

• Dallas Morning News: “Tarrant toll road project gets a major boost”
• Fort Worth Business Press: “North Tarrant Express project moving forward”