Construction and operation of the Capital Beltway HOT lanes project is being financed through a partnership between the public and private sectors.
By working together, the Commonwealth of Virginia and its private partners, Fluor and Transurban, will deliver traffic congestion relief on the Beltway much earlier, and at less cost to Virginia taxpayers, than if the improvements were solely funded by the Commonwealth from traditional revenue sources.
Under the proposed agreement with the Commonwealth, Fluor-Transurban will operate, maintain, and improve the Capital Beltway HOT lanes for a period of 75 years, once the lanes are open to traffic.
The total project cost will be approximately $1.7 billion, with funding provided from the following sources:
• $1.3 being a combination of up-front equity, bonds and loans provided and sourced by Fluor-Transurban
• $157 contribution to the project by the Commonwealth of the Virginia from the Transportation Partnership Opportunity Fund
• An additional $242 million in federal and state funding allocated to components of the project under VDOT's Six Year Improvement Plan, including Phase VIII of the Springfield Interchange and enhancements to the I-66 Interchange.
Fluor-Transurban will pay for operation and maintenance of the HOT lanes, as well as repaying all financing (bonds and loans) costs, through toll revenues generated by the project. It will also be responsible for:
• Development and operation of the electronic toll and traffic management system
• Routine and preventative maintenance, and incident response services
• Major maintenance, repairs and required capital improvements
Toll revenues must first be used to pay these costs, before Fluor-Transurban is permitted to make a return on their investment in the project.