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P3 Innovative Financing of the I-395 Virginia Express Lanes

Transurban North America

Award Category: 
Administration & Finance
Award Year: 


   Transurban will deliver the eight-mile 395 Express Lanes project as part of its long-standing partnership with the Virginia Department of Transportation (VDOT) to reduce traffic congestion in one of the world's 20 most congested cities. Transurban operates the 495 and 95 Express Lanes – a 45-mile network of dynamic, managed toll lanes that are serving over 6 million customers. Transurban will finance, develop, construct, operate and maintain the Express Lanes extension through the densely travelled 395 corridor connecting Springfield, Virginia and Washington, DC. The financing of the 395 Express Lanes involved multiple parties working together including Transurban North America, the Virginia Resources Authority, the Virginia Small Business Financing Authority and the VDOT Office of P3s. The process also included Commonwealth Transportation Board approval. Transurban created a unified credit that improved on the operational success of the 95 Segment to support the Series 2017 Bonds and resulted in a one-notch credit upgrade to BBB from both S&P and Fitch. The transaction received more than $1.5 billion in orders, allowing for further spread tightening to a final level of 49 to 50 basis points to Municipal Market Data rate. With demonstrated fiscal value to the Commonwealth of Virginia, its taxpayers and the project’s shareholders, the 395 Express Lanes moved swiftly to construction and is on schedule and on budget to open to customers in the fall of 2019.