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| Cintra closes financing for the LBJ Freeway in Texas LBJ Infrastructure Group, a consortium in which Ferrovial subsidiary Cintra has a majority stake, has successfully secured the placement of Private Activity Bonds (PAB), which signifies the last phase of the 2.78 billion dollars financing (2.26 billion euro) for the LBJ highway (IH-635) in Texas, USA. The company expects to sign the relevant documentation for financial closure within the week. The 21.2 kilometer highway, which will be operated under a "managed lanes" system, is located in the Dallas metropolitan area; the concession period is 52 years. The project involves constructing, maintaining, managing and financing the highway, which is expected to enter into operation progressively from 2013 to 2015. The project has been funded from four sources. Firstly, LBJ placed 615 million dollars of PABs (Private Activity Bonds) in the US municipal bond market on 15 June. In spite of the challenging conditions of the financial markets, this transaction was very well received by investors. Moreover, the Texas Department of Transportation (TxDOT) will invest close to 496 million dollars of public funding in the project. The US Federal Government has also granted a TIFIA credit of 850 million dollars. Additionally, the three partners in LBJCintra (51% stake), Meridiam (42.4%) and the Dallas Police and Fire Pension System (6.6%)will contribute close to 665 million dollars in proportion to their stakes. In December 2009, Cintra closed funding amounting to 2 billion dollars for the North Tarrant Express toll road in Texas, in the important Dallas-Fort Worth corridor, one of the most congested routes in the US. The toll road measures 21.4 kilometers (13.3 miles). The LBJ will use an electronic free-flowing tolling system, which will allow for smooth traffic movement and increase traffic carrying capacity. Tolls will be set dynamically on the basis of demand, and will vary throughout the day with the goal of providing users a safe and reliable level of service. Traffic on the road will be monitored in real time so as to keep vehicles moving at no less than 50 miles per hour in all segments. write your comments about the article :: © 2010 Construction News :: home page |