Meridiam North America: North Tarrant Expressway, Texas, now open to drivers

Innovative P3 project completed nearly nine months ahead of schedule

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Oct 08, 2014, 04:20 ET

NEW YORK and PARIS, Oct. 8, 2014 /PRNewswire/ -- Meridiam, the leading global investor and asset manager specializing in public and community infrastructure, announced today that the North Tarrant Express (NTE), a $2.1 billion highway reconstruction project, has opened to the public nearly nine months ahead of schedule.

The NTE is seen as a model for other PPPs in Texas and around the country. The three investors in NTE are Cintra (56.7%), Meridiam (33.3%), and the Dallas Police and Fire Pension System (10%). The project has used four methods of financing: an issuance of private activity bonds, a credit line controlled by the U.S. Department of Transportation called TIFIA, the investors' funds, and the Texas Department of Transportation (TxDOT).

As a unique public-private partnership (P3), and the first Comprehensive Development Agreement project signed in the state of Texas in 2009, the NTE project serves as a financial model for other P3 projects. Additionally, it represents an extensive collaborative effort that can be replicated elsewhere in the state and the country. "Public-private partnerships produce outcomes that are greater than the sum of their parts," said Jane Garvey, chairman of Meridiam North America. "The North Tarrant Express' opening is the result of collaboration and consensus between local, state, and federal government, the private sector, and the community at large, and we're proud to have been a part of this project. I hope that stakeholders across the U.S. can enjoy the benefits of projects of this type and know that we'll work hard to continue delivering great service and value."

'We're delighted to be part of this forward-looking project. It carries the DNA of a great infrastructure success: dynamic cooperation between the private and public sectors, creation of direct and indirect employment and an additional asset to business development throughout the region, and quality of life improvement in relief of traffic congestion," added Thierry Deau, founder and chairman of Meridiam.

The project, which began in late 2010, has included the complete reconstruction of expanded frontage lanes and main lanes and the addition of new TEXpress managed lanes along I-820 and SH 121/183 between I-35W in Fort Worth and Industrial Boulevard in Euless. Construction of the NTE was delivered using the design-build method by Bluebonnet Contractors, a joint venture between Ferrovial Agroman US Corp and Webber that provided more than 2,500 jobs to 170 local construction companies.

The NTE project nearly doubles the road capacity with the addition of new TEXpress lanes throughout the length of the corridor. Drivers will have the option to travel along the newly rebuilt general highway lanes and frontage roads at no charge, or enter the TEXpress Lanes.

Based on real-time traffic conditions and demand, these managed lanes will offer a new type of mobility, and see toll prices fluctuate periodically throughout the day to maintain a minimum speed of 50 mph. Sensors along the roadway will continuously transmit information about the volume of cars and level of congestion, and tolls will be recalibrated as often as every five minutes. As traffic levels and demand increase, the toll price changes to keep vehicles moving. Once traffic volumes drop, the price goes down. High Occupancy Vehicle users, carpool drivers and motorcyclists are entitled to get a 50% discount when using the tolled TEXpress Lanes on the NTE via the Drive On TEXpress smartphone application available on www.NTETEXpress.com.

For more information on the North Tarrant Express project, please visit www.northtarrantexpress.com

About Meridiam

Founded in 2005, Meridiam is an independent investment firm specialized in the development, financing, and management of long-term public infrastructure projects. With offices in Paris, New York, Toronto and Istanbul, Meridiam is the leading investor in public infrastructure in Europe and North America. Currently managing $3.5 billion of assets, the firm has to date invested in 32 projects. Designated Global Infrastructure Fund of the Year for the third time in 2012, Meridiam was also the first investor and asset manager to receive ISO 9001 certification.

To learn more: www.meridiam.com

SOURCE Meridiam