Industry News

Lanford Brothers, VDOT Gain National Recognition for Recycling Methods

February 01, 2012

Governor Bob McDonnell announced Wednesday that the Virginia Department of Transportation (VDOT) is gaining national recognition for using pavement recycling methods to rebuild aging roadways, saving significant time and money.

VDOT and VTCA contractor Lanford Brothers Company, Inc. of Roanoke rebuilt a section of Interstate 81 in Augusta County by recycling existing road material back into the new pavement structure.  This paving method reduced construction time by about two-thirds and saved millions of dollars, earning VDOT a national award by the asphalt recycling industry.

“Using these pavement recycling methods has the potential to revolutionize how we rehabilitate our aging roads, both in Virginia and nationally,” said Governor McDonnell.  “We expect to continue using these processes, where appropriate, to save money and materials as we rebuild older roads throughout the commonwealth.  VDOT next plans to use cold in-place recycling to rebuild a section of U.S. 17 in Isle of Wight County in Hampton Roads during the 2012 paving season.”

VDOT rehabilitated a 3.7-mile southbound section of I-81 near Staunton in 2011 using three processes known in the paving industry as:
• Cold in-place recycling
• Cold central-plant recycling
• Full-depth reclamation

This was the first time these three processes were used together on a single interstate project in the United States. The processes were performed both “in place” within the roadbed and adjacent to the highway, and they reused existing material from the underlying road structure. The driving surface received a new overlay of hot-mix asphalt.

“Savings on the I-81 in-place pavement recycling project go beyond time, money and materials,” said VDOT Commissioner Greg Whirley.  “It saved fuel because it reduced the need to transport as much new and old materials. It increased safety for drivers and road workers on the project, because it reduced work-zone congestion. This section of rebuilt pavement also will be stronger from bottom to top, extending its service life and reducing the need for such complex maintenance for many years.”

The project used a novel traffic-management plan that detoured cars onto U.S. 11 away from the construction, while large trucks used one lane on I-81 while the other lane was under construction. VDOT alerted motorists to the construction several hundred miles from the project via on-road, Web and other communication tools.

Roads & Bridges magazine and the Asphalt Recycling & Reclaiming Association (ARRA) will present VDOT with the 2012 Recycling Award in the “Cold in-Place” category at the ARRA annual meeting in late February. The awards recognize the top asphalt road recycling projects in North America. Winners are selected based on the amount of recycled pavement material used, cost savings and project challenges.

VTCA Contractor Safety Awards

February 01, 2012

VTCA is seeking submissions from contractor members for the 2011 VTCA Contractor Safety Awards. VTCA proudly encourages its members to implement and maintain programs providing a safe work environment for their employees as well as the general welfare of the public who travel through their work zones.  Through the annual VTCA Transportation Contractor Safety Award Program the Alliance is proud to recognize its contractor members who successfully demonstrate their commitment to a safe and healthy working environment.

Following a significant update to the award program and criteria VTCA is pleased to announce that applications are now being accepted for the 2011 VTCA Contractor Safety Awards.  This year’s winners will be announced in April at the VTCA Spring Transportation Construction Conference.

The safety award application is available for download in pdf format here.  The deadline for the submission of applications is March 16, 2012.

Governor McDonnell Announces Additional Components of 2012 Transportation Plan

January 20, 2012

Following on the heels of the Governor Bob McDonnell’s 2011 transportation funding plan which set the framework for investing nearly $4 billion over the next three years, the governor’s 2012 General Assembly session transportation plan will provide additional funding for maintaining Virginia’s infrastructure and will continue the administration’s efforts to ensure greater accountability and transparency in Virginia’s transportation entities while delivering transportation projects more quickly and cost effectively.

“Last year, working across party lines, we took a significant step forward in addressing Virginia’s long-neglected transportation system by implementing reforms to transportation agencies and by accelerating projects and bond funding that had languished in bureaucracy. Collectively, we put the most new funding into transportation in a generation,” said Governor McDonnell. “This session, we must take the necessary steps to build off of last year’s historic efforts, provide additional new funding for maintenance and construction, and continue reforming our transportation agencies to deliver projects and services more efficiently. Virginia simply cannot remain a leader in economic development and job creation if we do not continue to address our transportation challenges. That is why this year’s transportation package will dedicate additional funding to transportation and will help spur our economic recovery through job creation, forward-thinking investments and promoting our transportation assets.”

At the 2011 Governor’s Transportation Conference in Norfolk in December, Governor McDonnell called for changes in laws governing the allocation of future surpluses to transportation, dedicating portions of revenue growth attributable to transportation infrastructure projects to transportation, phasing in an additional dedication of .25 percent of the sales tax to transportation over the next eight years, establishing an Interstate 85 Connector Economic Development and Promotion Zone to encourage businesses to invest in Virginia and ship through Virginia ports, and advancing Virginia’s commercial space flight programs.

Today the governor added to those 2012 proposals by putting forward new initiatives to:

• Authorize the creation of the Virginia Toll Road Authority to construct, maintain and operate toll road facilities throughout the Commonwealth. Toll facilities currently operated by VDOT could be transferred to the authority, and the authority will provide another option for constructing major infrastructure projects without ceding complete control to a non-state partner.
• Authorize the Commonwealth Transportation Board (CTB) to sell naming rights for the Commonwealth’s transportation infrastructure. Private entities would be able to place their name on highways, interchanges, bridges and other infrastructure for an annual fee, which would go to the Highway Maintenance and Operating Fund to support maintenance. The CTB will establish rules, fees, and revenue projections for this program at a later date.
• Enhance the Barge and Rail Use, International Trade Facility, and Port Volume Increase Tax Credits adopted during the 2011 General Assembly to make Virginia’s port more competitive versus its competitors.
• Reform the Virginia Port Authority board of commissioners to ensure that the most experienced and qualified Virginians can serve on the board. Increase Virginia’s representation on the Metropolitan Washington Airports Authority board of directors to bring conformity with recently enacted federal legislation and ensure that Virginia taxpayers are fairly represented on the board.
• Codify Virginia’s seat on the Washington Metropolitan Area Transit Authority’s board of directors and implement qualifications-based requirements on appointees to the board to ensure effective governance and safety of the WMATA transit system. The qualifications-based requirements are the recommendation of the Governance Work Group comprised of governors McDonnell and O’Malley and Mayor Gray.

“Without an adequate transportation system, almost every aspect of our daily lives and government are negatively impacted,” said Governor McDonnell. “Therefore, we must get serious and start treating transportation like a core function of government. That is why I am proposing to increase transportation’s share of the sales and use tax revenues from 0.5 percent to 0.75 percent over the next eight years. My budget begins the process by dedicating an additional $110 million — only one-eighth of one percent of the total budget — to transportation over the course of the biennium. I am also proposing to increase transportation’s share of general fund surpluses to 75 percent and dedicate 1 percent of revenue growth above 5 percent to transportation. We will also expand the revenue sharing program to include maintenance, furthering our efforts to better leverage available revenues to meet Virginia’s growing transportation maintenance needs. We cannot provide additional funding without ensuring that our transportation organizations are accountable to our citizens and deliver projects in a safe, transparent and cost-effective manner. That is why my package will also include changes to continue our efforts to reform MWAA and WMATA.”

Governor McDonnell’s 2012 Transportation Initiatives (Including Proposals Announced in December)

Transportation Funding and Reform (Delegates Lingamfelter and Rust/Senator Wagner)

• Dedicates 1 percent of general fund revenue growth above 5 percent to transportation
• Increases transportation’s share of year-end surpluses to 75 percent
• Increases transportation’s share of state sales and use tax revenues from 0.5 percent to 0.75 percent
• Authorize the CTB to sell naming rights for the Commonwealth’s transportation infrastructure. Private entities would be able to place their name on highways, interchanges, bridges and other infrastructure for an annual fee, which would go to the Highway Maintenance and Operating Fund to support maintenance. The CTB will establish rules, fees, and revenue projections for this program at a later date.
• Creates transportation improvement districts wherein 25 percent of the growth in state tax revenues attributable to a transportation project will be transferred to the Transportation Trust Fund to fund other transportation improvements
• Authorizes creation of the Virginia Toll Road Authority to construct, maintain and operate toll road facilities throughout the Commonwealth
• Amends statutes regarding local transportation plans to ensure that state and federal dollars are spent in a timely and cost-effective manner

Port of Virginia Comprehensive Promotion and Reform (Delegates Cosgrove and Purkey /Senator Wagner)

• Exempts the Virginia Port Authority from bureaucratic requirements regarding environmental impact statements, outside legal counsel, surplus property and real property management to better enable the port to operate within a business environment
• Enhances incentives passed during the 2011 General Assembly to bring parity between Virginia’s incentives and our competitors
• Increases the number of commissioners eligible to serve from Hampton Roads and places qualifications based requirements on commissioners to ensure that the Virginia Port Authority is governed by business leaders with the requisite experience to run a port
• Creates the Route 460 Corridor Interstate 85 Connector Economic Development Zone to help make Virginia a leader in maritime commerce and provide incentives to business involved in manufacturing of goods shipped through the port to locate in Virginia

Virginia Commercial Space Flight Authority Comprehensive Promotion and Reform (Delegate May/ Senator Herring)

• Restructures the Virginia Commercial Space Flight Authority and the board of directors to turn it into a truly independent entity capable of growing and promoting Virginia’s role in the field of commercial aerospace

Metropolitan Washington Airports Authority (Delegate May/ Senator Colgan)

• Increases the total membership of the MWAA board of directors from 13 to 17, granting two additional seats to Virginia, one to Maryland and one to D.C.
• Increases the number of directors required to approve the annual budget and bond issuances from 8 to 10
• Prohibits directors from serving past the expiration of their terms

Washington Metropolitan Area Transit Authority Reform (LeMunyon)

• Codifies Virginia’s seat on the WMATA board of directors
• Imposes certain qualifications based requirements on those members eligible for appointment to the board of directors

Virginia Transportation Infrastructure Bank Finances Chesapeake Dominion Boulevard Project

January 18, 2012

City scheduled to begin construction this summer on its top transportation priority.

Governor Bob McDonnell announced today that the Dominion Boulevard project, a significant transportation improvement to ease congestion and improve safety in Chesapeake, will move forward as a result of financing provided by the Virginia Transportation Infrastructure Bank (VTIB).

The Commonwealth Transportation Board (CTB) voted to approve Chesapeake’s application for financing Dominion Boulevard road and bridge construction through the infrastructure bank. It issues low-interest loans to fast-track high priority projects. The infrastructure bank is part of the governor’s $4 billion transportation package passed in 2011 by the General Assembly.

“The Virginia Transportation Infrastructure Bank allows critical transportation projects to be built now instead of waiting for years to happen,” said Governor McDonnell. “The bank provides a resource that public- and private-sector entities can use to finance projects and accelerate construction. This plays a major role in driving the economic vitality of Virginia and getting citizens back to work. The Dominion Boulevard improvements have the potential of creating more than 13,000 jobs as a result of better transportation and access.”

The 3.8-mile project will widen Dominion Boulevard from two to four lanes from Cedar Road to Great Bridge Boulevard, replace the two-lane drawbridge over the Elizabeth River with a four-lane fixed-span, high-rise bridge, and provide improved connection between I-64/464 and the Virginia Department of Transportation (VDOT) relocation of the southernmost portion of Route 17 to the Virginia/North Carolina line. The construction cost is $305 million of the total project estimate of $412 million. While much of the funding will be provided by toll revenue bonds and previously committed funds, the City of Chesapeake submitted an application for a $152 million loan from the infrastructure bank last December to complete the funding package. After review by VDOT and the Virginia Resources Authority which manages the VTIB, and CTB approval, Chesapeake is able to move ahead on the project.
       
Secretary of Transportation Sean Connaughton said, “The Virginia Transportation Infrastructure Bank has the potential to revolutionize how projects are financed and advanced in our state. The time is now for the Commonwealth and localities to take advantage of this climate of low interest rates for financing of transportation projects. This can move projects from planning to construction.”
       
“Chesapeake is now the first entity to receive a loan from the infrastructure bank,” said VDOT Commissioner Greg Whirley. “We are leveraging all resources to get projects and traffic moving.”
       
The VTIB, initially funded with $283 million from the fiscal year 2010 surplus and savings from the VDOT performance audit, is designed to make low-interest loans and grants to localities, transportation authorities and private-sector partners for transportation projects. The administration is looking to put $1 billion into the bank through a number of mechanisms over the next three years.

Lynchburg Solicits Contractors for Midtown Connector

December 27, 2011

Sealed bids for Midtown Connector Project – Route 501 Business, From: Intersection Route 29 Business, To: Intersection of Murrell Rd., will be received by the City of Lynchburg, Procurement Division, City Hall, Lynchburg, VA, until 3:00 p.m., 2 March, 2012, and then publicly opened and read, in the Bidder’s Room, Third Floor, City Hall.

This project includes The Midtown Connector project generally includes road construction including additional turn lanes, pavement widening, a roundabout, median islands, new sidewalk construction, stormwater management basins, drainage system networks installation of new traffic signals, and maintenance of traffic during construction.

The Contract Documents for the above project may be obtained from CRI Mutual Press, 60 9th Street, Lynchburg, Virginia 24504, (434) 845-1203 for a non-refundable fee of $667.00/set. No partial sets of Contract Documents will be provided. Bid Documents consisting of Project Manual and Drawings are available in PDF format on the City’s website: www.lynchburgva.gov under Business, Procurement, Current Solicitations.

A MANDATORY Pre-Bid Conference will be held at 2:00 PM, 11 January 2012, in the Community Meeting Room of Lynchburg Public Library, 2315 Memorial Ave., Lynchburg, VA 24501. Interested bidders shall sign in to document attendance no later than 2:00 PM.

All requests for clarification of or questions regarding this Advertisement for Bids or for additional information must be made in writing, by facsimile (434) 845-0711 or email to stephanie.suter@lynchburgva.gov and received by 2:00 p.m., 01 February 2012. All posted clarifications or addenda must be signed and accompany any bid submitted.

VDOT Interstate 66 Widening Design-Build RFQ Released

December 20, 2011

VDOT has issued a Request for Qualifications (RFQ) to solicit Design-Build Statement of Qualifications from those entities interested in contracting to serve as the Design-Builder for the Interstate 66 Widening Project in Prince William County, Virginia.

A project information meeting will be held on January 4, 2012 for potential Offerors at the NoVA District Office of the Virginia Department of Transportation, 4975 Alliance Drive, Fairfax, VA 22030, in the Potomac Conference Room at 10:00 A.M. (prevailing local time).

The RFQ is due Feb. 13, 2012.

Access http://www.virginiadot.org/business/request-for-qualifications.asp to download the RFQ.

Governor McDonnell Outlines 2012 Transportation Plan

December 08, 2011

Speaking to more than 700 hundred industry and transportation agency professionals during the 2011 Governor’s Transportation Conference in Norfolk, Governor Bob McDonnell today outlined his transportation policy and funding plans for the upcoming 2012 General Assembly Session. The governor called for changes in laws governing the allocation of future surpluses to transportation, dedicating portions of revenue growth attributable to transportation infrastructure projects to transportation, increasing the portion of sales tax dedicated to transportation, the establishment of an Interstate 85 Connector Economic Development and Promotion Zone to encourage businesses to invest in Virginia and ship through Virginia ports, and the advancement of Virginia’s commercial space flight programs. The governor’s new proposals follow the successful passage of his 2011 transportation agenda, which put the most new funding into roads and rail in the state in 25 years.

“Transportation and economic development and prosperity are inextricably linked,” said Governor McDonnell. “Whether it’s the infrastructure needed to move people and goods, or certain transportation-related industries poised for major growth and job creation, we must continue to make progress in improving our transportation networks if Virginia is to remain economically competitive. During my administration, we have made much progress, but we still have much more to do. That is why I am following up on last year’s historic $4 billion transportation funding package with an aggressive transportation program to continue to get Virginia out of gridlock and spur our economic recovery through job creation, forward-thinking investments, and promotion of Virginia’s resources to attract additional private-sector development.”

Virginia has made significant advances in transportation under the McDonnell administration. These include, among others:

• A historic investment in transportation of $4 billion over the next three years, done without raising taxes. This is the biggest infusion of new funding for transportation in Virginia in 25 years.
• Reopening 19 closed rest areas and developing innovative new partnerships with the private sector to offset rest area maintenance and operating costs
• Completing four audits of transportation agencies resulting in the identification of more than $1.4 billion in unspent transportation funds and a more streamlined project development process to expedite construction and maintenance work
• Creating the Office of Transportation Public-Private Partnerships
• Developing a new multimodal strategic plan that focuses on supporting economic opportunity, improving planning and implementation processes, and a renewed emphasis on customer satisfaction
• Working with the Federal Highway Administration to move forward with tolling Interstate 95
• Recent signings of major public-private transportation agreements including;
• The Downtown-Midtown Tunnel/MLK Extension Project
• The I-95 HOT Lanes Project
• The Pound Connector and Doe Branch sections of Coalfields Expressway
• The next eight-mile phase of Route 58 improvements along the 36-mile corridor between Hillsville and Stuart
• Advancing the I-85 Connector, a new interstate-style Route 460 between Petersburg and Suffolk

“While the governor’s transportation package, which passed with broad bi-partisan support this year, set the framework for investing $4 billion over three years—the largest investment in decades—Virginia must continue its focus on transportation to ensure future generations can depend upon our transportation network to move the goods and services necessary to keep the Commonwealth thriving,” said Secretary of Transportation Sean T. Connaughton. “It is all about investing in our transportation network now to create jobs and help Virginia recover from the struggling economy. Last year’s legislation enabled us to accelerate the issuance of $1.8 billion in previously authorized transportation bonds at a time when VDOT is seeing near historically low interest rates, and the Commonwealth Transportation Board will issue $1.1 billion in federally backed direct GARVEE bonds to better leverage our federal transportation dollars to support major congestion reducing PPTA projects. The newly created Virginia Transportation Infrastructure Bank will help leverage other local and private-sector capital for transportation projects through the issuance of low interest rate loans. Because of these efforts, nearly 900 project phases are moving forward and thousands of jobs have been supported in Virginia.”

An independent economic analysis by Chmura Economics showed that once fully implemented, last year’s transportation package would grow the Virginia economy by over $13 billion and sustain an additional 104,000 jobs. This year’s package will build upon that impact. 

       
2012 Transportation Plan Highlights

The governor’s proposed transportation plan for 2012 includes the following revenue-enhancements and policies to promote transportation investment:

• Increasing transportation’s share of year-end surpluses to 75 percent. This measure will provide transportation with additional revenues without jeopardizing other key areas of need. Over the past 2 years, $100 million in surplus has been sent to transportation.
• Authorizing the Commonwealth Transportation Board to implement a version of tax-increment financing. When the state funds a major new piece of transportation infrastructure, transportation should receive a portion of the growth in state tax revenues that result from economic development surrounding the project. These revenues will be reinvested in additional projects that can help spur additional development.
• Increasing the dedicated transportation allocation of the sales tax from .5 percent to .75 percent over the next 8 years. During the upcoming budget, increasing the dedicated sales tax percentage to .55 percent generating over $110 million in new transportation funding going to maintenance
• Proposing that the first 1 percent in revenue growth over 5 percent each year be dedicated to transportation
• Expanding VDOT’s Revenue Sharing Program to include maintenance. Currently, the state will match local money dollar-for-dollar on capital improvements within a locality.  Enabling maintenance projects to be eligible for this program will help make our maintenance dollars go farther.
• Legislation to restructure and fund the Virginia Commercial Space Flight Authority and turn it into a true independent agency to develop the Mid-Atlantic Regional Spaceport into the number one commercial space flight facility in the nation
• Legislation to promote the Port of Virginia by eliminating some of the bureaucratic processes with which the Virginia Port Authority must comply and creating the I-85 Connector Economic Development and Promotion Zone, wherein companies shipping goods through the port or engaged in maritime commerce can operate income tax free for their first two years in operation

The governor will announce additional proposals and more detail of this year’s transportation package over the next month leading up to 2012 General Assembly session.

NOVA I-95 HOV/HOT Lanes Project Advances

December 06, 2011

Governor Bob McDonnell announced today that the Virginia Department of Transportation (VDOT) and Fluor-Transurban have come to an in-principle agreement on the major commercial terms to build the I-95 High Occupancy Vehicle/High Occupancy Toll (HOV/HOT) Lanes Project in Northern Virginia. Agreement on the commercial terms means both parties have established the major tenets of a contract. This step forward enables VDOT and Fluor-Transurban to finalize the details of a comprehensive agreement and financing package for the $940 million project.

The in-principle agreement was negotiated between Fluor-Transurban, VDOT Commissioner Greg Whirley, and Virginia’s new Office of Transportation Public-Private Partnerships (OTP3). The project is being financed and constructed under Virginia’s Public-Private Transportation Act with $843 million financed by Fluor-Transurban, with financial close targeted to occur in mid 2012. The state contribution is $97 million, which will be used in part to advance construction activities as early as spring 2012.

The project will expand the existing HOV facility on I-95 to create 29 miles of HOV/HOT Lanes between Edsall Road in Fairfax County and Garrisonville Road in Stafford County, with improved access to major Virginia employment centers and military sites. Motorists will have an option to pay a toll to use the HOT Lanes, while carpools with three people or more and buses will have free access to the lanes.

To maximize the benefits of the new HOT Lanes network, the Commonwealth will invest $200 million to expand bus service in Spotsylvania, Stafford, Prince William and Fairfax counties, and construct more than 3,000 new park and ride spaces.

Key aspects of the agreement require Fluor-Transurban to:

• Provide a fixed-price, fixed-date, design-build contract
• Finance, design and build the facility; manage and fund all operations and maintenance for a period of 73 years following construction
• Share revenue with the Commonwealth at agreed upon rates to fund other transportation improvements in the corridor should the HOT Lanes be a financial success
• Provide substantial contract opportunities for Disadvantaged Business Enterprises and Small, Women and Minority-Owned businesses
• Maintain free access for High Occupancy Vehicles (HOV) meeting state eligibility requirements and buses
• Manage traffic levels over the long-term to facilitate quality, reliable travel for HOV and buses
• Develop and operate a dynamic tolling system. Tolls will vary based on demand to provide fast, reliable travel times. All tolls will be paid with an E-ZPass and there will be no toll booths. Electronic signs will alert travelers to current toll rates so they can make an informed choice whether or not to use the HOT Lanes.
• Return the asset to the Commonwealth in good working order at the end of the agreement

VDOT will continue to own and oversee all aspects of the facility to ensure the HOV/HOT lanes are constructed, operated and maintained in accordance with agreed-upon standards.

The I-95 HOV/HOT lanes will:

• Expand the I-95 HOV lanes from two to three lanes for 14 miles from Edsall Road to the Prince William Parkway, improve six miles of existing HOV lanes from the Prince William Parkway to Route 234, and extend the HOV lanes for nine miles from Dumfries in Prince William County to Garrisonville Road in Stafford County, alleviating the worst bottleneck in the region. Stafford County would have HOV lanes for the first time.
• Provide a seamless connection to the I-495 HOT Lanes (under construction) and Tysons Corner
• Allow free travel for carpools with three or more persons as well as buses, vanpools, motorcycles and emergency vehicles. Charge single-person vehicles a toll based on time of day and travel distance.

The Department of Rail and Public Transportation recently completed a study to fully maximize the benefits of the HOV/HOT lanes by identifying multi-modal solutions. Recommendations include an additional 9,575 park and ride spaces (over 3,000 of those spaces will be provided by VDOT); expanded transit routes and services from Spotsylvania, Stafford, Prince William and Fairfax counties, including adding 46 buses; 750 off-site parking spaces and shuttle services at the Franconia-Springfield Metrorail station; and vanpool, carpool and telework program assistance. Improvements are or will be funded in the Commonwealth’s Six-Year Improvement Program.

Go to www.VirginiaDOT.org for more information.

I-581/Valley View Interchange RFQ Updated

December 05, 2011

VDOT has posted an update to the RFQ for the I-581/Valley View Interchange Phase II project was posted on VDOT’s Design-Build RFQ webpage on December 5, 2011. Specifically, “Attachment 3.1.2 – SOQ Checklist” was revised. Details are available at http://www.virginiadot.org/business/request-for-qualifications.asp  to download the updated file.

New Hampton Roads Midtown Tunnel Agreement Signed

December 05, 2011

Governor Bob McDonnell today announced Monday that the Virginia Department of Transportation (VDOT) has entered into a comprehensive agreement with Elizabeth River Crossings (ERC) to build a new Midtown Tunnel, rehabilitate the existing Midtown Tunnel as well as the Downtown Tunnels, and extend the Martin Luther King Freeway.

The comprehensive agreement has been under negotiation for almost five months between VDOT, ERC and the new Office of Transportation Public-Private Partnerships (OTP3). ERC is a joint venture between Skanska Infrastructure Development and Macquarie Group. The agreement was signed by VDOT Commissioner Greg Whirley under Virginia’s Public-Private Transportation Act. It authorizes construction to begin in 2012, pending financial close early next year.

Under the comprehensive agreement VDOT will maintain ownership of the infrastructure and will oversee ERC’s activities. ERC will finance, build, operate and maintain the facilities for a 58-year concession period. ERC will also assume risk of delivering the project on a performance-based, fixed-price, fixed-date contract, protecting users and taxpayers from cost overruns and delays.

The key components of the project include:

• Doubling the capacity of the Midtown Tunnel by building an additional two-lane tunnel near the existing one under the Elizabeth River
• Increasing transit service between Portsmouth and Norfolk
• Rehabilitating the existing Midtown Tunnel and both of the Downtown Tunnels
• Extending the Martin Luther King Freeway from London Boulevard to I-264, with an interchange at High Street
• Modifying the interchange at Brambleton Avenue/Hampton Boulevard in Norfolk

Financing and tolls:

• The comprehensive agreement was signed for a value of $2.1 billion. This includes total project costs such as financing, designing, building, maintaining and operating the tunnels and the MLK extension.
• VDOT’s contribution is $362 million specifically designated to lower the tolls. VDOT’s contribution is reduced due to lower interest rates.
• ERC will provide financing through a $422 million TIFIA loan, and approximately $1.3 billion through equity, debt and revenue from operations.
• Project will be financed through tolls, initially ranging from $1.59 to $1.84 per car for the tunnels and $.50 for the Martin Luther King Freeway extension for tunnel users and $1 for non-tunnel users.
• Tolls will be collected electronically using E-ZPass, eliminating the need for toll booths.

For additional information visit: Downtown Tunnel/Midtown Tunnel/MLK Extension: www.midtowntunnel.org; Office of Transportation Public-Private Partnerships: www.vappta.org