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Interstate 66 Corridor Improvements

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Interstate 66 Corridor Improvements REQUEST FOR INFORMATION INTERSTATE 66 CORRIDOR IMPROVEMENTS RESPONSE BY TRANSURBAN TABLE OF CONTENTS GENERAL TECHNICAL CHALLENGES COMMERCIAL AND FINANCIAL Please describe your firm, its experience AND ALTERNATIVE SOLUTIONS STRUCTURE in relation to public-private partnership Based on your experience in the Please explain your firm’s interest in the projects, and its potential interest in development of similar projects and improvement concepts discussed in the relation to the Project? characteristics of the I-66 corridor, Tier 1DEIS. What is your recommended 1 please explain the technical challenges approach for financing the capital cost of that may be encountered with the each concept? What, if any, advantages will the highway and transit improvement 9 commonwealth potentially gain by concepts described in the Tier 1 DEIS. entering into an agreement in which Please provide recommendations Please discuss your firm’s interest in: operations and maintenance, life-cycle for mitigating or overcoming those a. Accepting traffic and revenue risk in responsibility, and/or traffic and revenue challenges. a toll concession risk are transferred to the private 5 b. Accepting performance risk in an sector? How do you assess the likely availability structure magnitude of such advantages? Do you believe a bifurcated highway 10 What are the potentially offsetting system along the I-66 corridor is disadvantages? technically feasible? Please provide any What is a reasonable concession term 2 experience and supportive information for a managed lane or a bus rapid transit that you may be able to share from concept? Why? similar projects. 10 PROCUREMENT PROCESS 6 Do you have any particular concerns with or major observations about the What are the most significant cost ADDITIONAL CONSIDERATIONS milestone schedule provided in this RFI? drivers in the development and operation If your firm is a Disadvantaged Please provide your views on proposed of the managed lanes and bus rapid Business Enterprise (“DBE”) or a Small, solutions to address these concerns? transit concepts along the I-66 corridor? Women-owned, and Minority-owned 3 How can these concepts be implemented in such a way as to preserve the potential Business (“SWaM”), please provide for rail extension? any suggestions or comments on how What are the critical path items for the 7 OTP3, VDOT or DRPT can help to develop procurement of this Project and why? teaming opportunities with prime 3 What, if any interoperability issues do contractors. you foresee with the current tolling 11 Looking ahead over the next two to three system on I-495 Express Lanes? years, do you believe your firm will be 7 What additional challenges or risks interested in submitting a committed should OTP3, VDOT, DRPT or CTB be proposal for the development of the aware of in regard to the Project’s scope, Project (any or all of the build concepts)? What suggestions do you have for better procurement process, delivery method, Are there any particular concerns that coordination between this Project and term of contract, technical and financial may prevent your firm from getting other projects currently under design or feasibility, etc.? engaged in the project development? construction along the I-66 corridor? 11 How might those concerns be resolved? 8 4 What challenges are associated with ABOUT TRANSURBAN What is the minimum amount of time managing the life-cycle costs for the that your firm requires to develop and improvement concepts as described in submit a committed detailed proposal the Tier 1 DEIS? What measures would for the Project after issuance of you suggest to mitigate these risks? potential RFP? 8 4 What adjustments to the Project scope, or development strategies (including potential phasing of project elements) would you consider/recommend to reduce the upfront capital costs and/or the life-cycle costs of the overall project costs? 8 GENERAL Please describe your firm, its experience in relation to public-private partnership projects, and its potential interest in relation to the Project? Transurban partners with governments to deliver road-based transportation solutions that meet community needs over the long term—developing sustainable, safe, innovative and efficient projects. That means working collaboratively with all stakeholders to develop strategic transportation projects that meet the policy objectives of our government partners, and having the expertise and experience to execute projects successfully. As a long-term toll road owner and operator, with our U.S. headquarters in Virginia, Transurban manages traditionally public assets under concessions that can last for decades. Our approach is to work closely with our government partners during every > Transurban and its partners delivered – Expansion of existing HOV lanes from stage of a project—from financing and the $2 billion 495 Express Lanes Project two to three lanes for 14 miles between development to construction and operation. early, on budget and with an industry- Prince William Parkway to vicinity of leading safety record. Edsall Road on I-395; This unique long-term focus has enabled > The 495 Express Lanes project provided: – Creation of a seamless connection Transurban to grow from a $500 million to to the 495 Express Lanes and into a $10 billion company (equity value) since its – More contract opportunities for Virginia Tysons Corner; formation in 1996. The company generates small businesses than any single in excess of $800 million of proportional transportation project in the history – New or improved access to and from EBITDA at industry leading operating of Virginia; the lanes at key interchanges; and margins, and has a robust balance sheet – Introduction of HOV and reliable transit – Technology and law enforcement and an A- credit rating. options to the Virginia side of the to keep violators out of the lanes. Capital Beltway; Virginia’s partnership with Transurban has > Transurban’s community grant program generated significant transportation and – Replacement of more than $260 million and “1,000 Trees in 1,000 Days” campaign economic outcomes for the commonwealth: of aging infrastructure, including more have supported more than 120 local than 50 bridges and overpasses; community initiatives, including programs > Combined, the Express Lanes projects to restore streams, improve safety on local have generated over $5 billion in economic – Replacement of existing soundwalls roadways, and promote bicycling as an activity and more than 28,000 jobs; and construction of new soundwalls to double existing noise reduction tools integral part of transportation in > Transurban and its partners have injected for surrounding neighborhoods; Northern Virginia. more than $500 million in private equity > Transurban’s award-winning “Orange to help fund critical transportation – Construction of carpool ramps Cones. No Phones.” distracted driving improvements providing congestion relief connecting I-95 with the Capital awareness campaign and dedicated and new, reliable transit options; Beltway to create a seamless HOV network; and Express Assist service crews, which have > The 495 Express Lanes project was the first helped more than 450 drivers in the first – Upgrades to 12 key interchanges and transportation project where private activity year, demonstrate our strong commitment new access points at Merrifield and bonds were used, and was among the first to safety in both the construction and Tysons Corner. to bring credit assistance to Virginia from operation of managed lanes projects. the Transportation Infrastructure Finance > The 95 Express Lanes project is providing: and Innovation Act (TIFIA); – Almost $200 million in contract > Travelers in both the I-95 and Capital opportunities for Virginia small Beltway corridors overwhelmingly support businesses; 1 the projects, as Fall 2013 surveys show – New ramps, lanes and active a majority believe the projects benefit management that will improve the region; and conditions for current HOV and transit users; – Extension of existing HOV lanes 9 miles from Dumfries to Garrisonville Road in 1 KRC Research. “Optimizing Usage of the 495 Stafford County to alleviate the worst Express Lanes.” September 2013 and Povaddo. bottleneck in the region; “95 Customer Segmentation Report” October 2013. TRANSURBAN I-66 RFI RESPONSE 1 What, if any, advantages will the commonwealth potentially gain by entering into an agreement in which operations and maintenance, life-cycle responsibility, and/or traffic and revenue risk are transferred to the private sector? How do you assess the likely magnitude of such advantages? What are the potentially offsetting disadvantages? Transurban believes the best option for relieving congestion in the I-66 corridor is a managed lanes concept that would increase capacity, provide new travel choices, enable express bus routes and other transit improvements. Managed lanes would also improve spot locations and choke points, intermodal connectivity, safety, and communication. Advancing a partnership for managed lanes under a demand-risk model offers the commonwealth a number of benefits: > Provides substantial capital to help fund transportation improvements in the form of an upfront private equity investment; > Shifts traffic and revenue risk to the private sector, and away from taxpayers; > Manages the amount of state and federal taxpayer funds required to successfully finance the project, enabling the commonwealth to direct its resources to other critical transportation improvements; > Accelerates
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