USDOT’s Build American Bureau announces $3.89 billion TIFIA loan for Georgia’s State Route 400 Express Lanes Project
The U.S. Department of Transportation’s (USDOT) Build America Bureau is awarding a loan of up to $3.89 billion to a public-private partnership between the Georgia Department of Transportation (GDOT), the State Road and Tollway Authority and SR 400 Peach Partners, LLC (Peach Partners). The funding, made possible by the Transportation Infrastructure Finance and Innovation Act (TIFIA), is the largest loan approved to a single borrower to date.
“This loan is another investment in getting America building again,” said USDOT Secretary Sean P. Duffy. “Through the improved TIFIA program and innovative partnerships like the SR 400 project, we’re reducing taxpayer waste, accelerating construction timelines and helping people get where they want to go safer.”
USDOT notes the State Route 400 Express Lanes Project will add new lanes in both directions along a 16-mile section from the Metropolitan Atlanta Rapid Transit Authority (MARTA) North Springs Station to one mile north of McFarland Parkway. While facilitating current MARTA and XPress bus connections, Peach Partners will also provide $75 million for future bus rapid transit (BRT) related improvements. MARTA will operate the future BRT system, which is expected to share the express lanes for approximately 12 miles.
“This partnership is a perfect example of how, when the public and private sectors work together, we can provide communities with the most effective and cost-efficient solutions while reducing the need for public funding,” said Build America Bureau Executive Director Morteza Farajian, Ph.D. “Georgia’s innovative approach has allowed them to leverage our low-interest financing with the developer’s investments to provide more benefits for the Atlanta community through this project and other projects that will be funded because of this project. A win for everyone that would not be otherwise possible.”
According to USDOT, the project calls for Peach Partners to provide a $3.8 billion concession fee to GDOT that can help fund other roadway projects as part of the public-private partnership agreement to design, build, finance, operate and maintain the express lanes.
“Securing TIFIA federal credit assistance is an essential milestone for the SR 400 Express Lanes project,” said SR 400 Peach Partners CEO Javier Gutierrez. “Thanks to this loan, this critical project will become a reality, improving safety and mobility in the greater Atlanta metro area for generations to come.”
Georgia Gov. Brian Kemp added, “We are excited to celebrate Georgia being home to the largest public-private partnership in USDOT history. As the number one state for business, Georgia’s logistics and transportation network is a major selling point to job creators, and this approved financing will both boost our competitive edge and make it easier for hardworking Georgians to commute. Thank you to the Trump administration and Secretary Duffy for their support of this vital project.”
USDOT previously allocated up to $3.4 billion in Private Activity Bonds to the project, bringing the total investment to approximately $7.5 billion. The project is expected to reduce delays by over 19,000 hours each day, or about 15 minutes per traveler, due to less idling and traffic congestion. It will also enhance public safety through the construction of new bridges and other safety improvements, the replacement or widening of several existing bridges and will reduce traffic incidents by an estimated eight percent. USDOT says the new express lanes will be tolled using dynamic congestion pricing to manage demand and maintain reliable trip times while current lanes will remain free.