In March 2005, following a competitive process, TxDOT engaged a team led by Cintra, a Spanish toll road operator, and San Antonio-based construction firm Zachry to prepare a master development plan for the entire TTC-35 corridor. Under the CDA, Cintra-Zachry would identify segments within the corridor that might be feasible to advance in the near term. The team also had the right to negotiate a separate CDA to develop those segments on a P3 basis.
The TTC-35 plan produced by Cintra-Zachry identified SH 130 Segments 5-6 as a strong candidate for private development. The two firms formed a joint venture, SH 130 Concession Company-with Cintra holding a 65 percent stake and Zachry the remaining 35 percent-to negotiate a CDA for the project with TxDOT.
In June 2006, the Texas Transportation Commission approved the state's first toll road CDA concession awarding SH 130 Concession Company a 50-year DBFOM concession to develop the first new-build private toll road in the state of Texas.
Under the terms of the SH 130 CDA, SH 130 Concession Company would collect all toll revenues on the project and then share the revenues with TxDOT by applying a sliding scale based on the concessionaire's financial performance. Future toll rate increases would be tied to growth in the state of Texas' gross domestic product.
The CDA also required the developer to make an upfront concession fee payment of $25 million for the right to build the project. This fee would be increased if TxDOT were to authorize a higher maximum speed limit for the facility, thereby increasing the facility's desirability as an alternative route to I-35. In September 2012, TxDOT set the speed limit on the southern portion of SH 130 at 85 mph-the highest in the U.S.-triggering a $100 million increase in the concession fee due from the developer.
The CDA agreement also included a 10-mile-wide "Competing Facilities Zone" where if TxDOT constructed new roads or enhanced existing facilities, it could be liable for the concessionaire's lost revenue. However, there were specific exclusions in the agreement for all portions of I-35, as well as all highway projects listed at the time on all regional long-range transportation plans.