North Carolina to RFP c$850m Triangle Exwy DB, P3 for Currituck Sound Bridge

In addition to the cashless tolling decision (previous report), North Carolina Turnpike's (NCTA) board this week made two other major decisions:

- to proceed now to procure a design-build civil contract for the 29km (18 mile) six lane approx $850m Triangle Expressway tollroad west of Raleigh

- to begin a toll concession procurement (P3) for the Mid Currituck Sound Bridge

The first decision is unconventional in that NCTA can only finance about $600m of the estimated $850m capital cost with conventional toll revenue bonds, and they still aren't sure how they will fill the 'gap.' They will officially declare to potential bidders that there is a risk the project won't proceed, but outline the steps they are taking to get the funds. They have already issued an RFEI for high risk subordinated bridge financing of $250m, and got about ten responses.

They are now issuing an RFP for the funding.

In addition they are lobbying the state legislature again to appropriate an annual sum that would back the gap financing.

Bridge to Outer Banks to be P3d

The idea is to be ready to select a design-builder in the second quarter of 2008 in order to get back on schedule for an opening of the tollroad in 2011.

The Mid Currituck Sound Bridge is also a somewhat iffy project. It won't fly financially with toll revenue bonds and still needs to go through the NEPA environmental approval process. A 8km (5 mile) long bridge over the sound (plus approach roads) to the Outer Banks barrier island/peninsula it will hugely improve access to the holiday houses along a good stretch of the Atlantic Ocean beachfront and provide a new hurricane evacuation route.

Construction cost is put int he range $445m to $945m depending in part on whether its 2 or 4 lanes, but NCTA CEO David Joyner has said that he thinks private sector innovation and staging might be able to turn it into a viable project.

(IDEA: How about unlimited free traffic flow toll rate setting, allowing the pre-announced "Guaranteed Gouge Hurricane Toll" - as a revenue source, traffic management tool, and incentive to get 'em out early - like the advertised $100+ per vehicle toll?)

NCTA wants a concessionaire prepared to join now to promote and develop the bridge project by ushering it through the difficult permitting process.

A preliminary traffic and revenue report (71p pdf) by WSA is on the Turnpike's website:

http://www.ncturnpike.org/pdf/Mid-Currituck_Preliminary_Traffic_and_Revenue.pdf

TOLLROADSnews 2007-11-15