Building on the momentum of the project contemplated in the unsolicited proposal, the Texas Transportation Commission-TxDOT's governing board-approved in March 2006 a revised approach to develop two P3 procurements, one calling for the development of at least the I-820 corridor (Segment 1) as contemplated in the canceled procurement, and a second to create a Master Development Plan for improvements to additional highway segments in the region. This multi-segment system of planned improvements was named the North Tarrant Express. Additional segments included SH 121/SH 183 from I-820 to SH 161 just east of DFW airport (Segment 2), as well as I-35W running north-south through Fort Worth (Segments 3A, 3B, and 3C) and an additional portion of I-820 starting where it turns south toward I-30 at the junction with SH 121/SH 183 (Segment 4).
The Master Development Plan would assess the financial feasibility of the additional segments and prioritize their implementation. The winning proposer would also have the right of first refusal to implement any of these sections on a P3 basis. By including the additional segments in the procurement, TxDOT hoped to generate greater interest from the private sector since a network of tolled managed lanes would be financially more attractive than a standalone facility. TxDOT did not believe that all segments necessarily would be feasible to implement on a P3 basis, but would benefit from the private sector's expertise in conducting such a feasibility analysis.
A new dual P3 procurement process began with an RFQ in December 2006. TxDOT shortlisted four of seven respondents in June 2007. Detailed proposals were solicited in March 2008 after some delay. Uncertainty over the fate of the procurement had arisen due to a 2007 moratorium on P3 activity in the state, from which the NTE was ultimately exempted.
The procurement included the mandatory reconstruction of the four existing general purpose lanes on I-820, the addition of two tolled managed lanes in each direction, and new frontage roads, as well as the optional completion of the SH 121/SH 183 segment and other components west of Segment 1 where I-820 intersects I-35W. TxDOT would provide up to $600 million in public funding to support the P3 project and would award the project to the proposer providing the greatest value to the state.
TxDOT received two submittals in December and conditionally awarded both P3 agreements to North Tarrant Express Mobility Partners (NTEMP) in January 2009. NTEMP is a private consortium composed of Cintra U.S., Meridiam Infrastructure Finance, and the Dallas Police and Fire Pension System. Cintra, a Spanish company, is a highly experienced toll road developer and operator. Meridiam is a French firm and is one of the largest investors in and developers of public infrastructure facilities in the world.
In June 2009, TxDOT and NTEMP executed the two P3 agreements and formally concluded the competitive bidding process, a milestone referred to as reaching "commercial close." NTEMP's proposal provided the best value to the state by including the mandatory components of Segment 1 along with three sub-segments of Segment 2. It also included the work west of the I-35W/I-820 Interchange and committed to building a third general purpose lane in each direction along Segment 1 and a third managed lane in each direction along Segment 2 by 2030. The bid exceeded TxDOT's expectations by promising to deliver portions of Segment 2, along with Segment 1, within the limits of the available public funding.
NTEMP's P3 concession will extend over a 52-year period. The private developer will set the toll rates for the managed lanes and collect toll revenues over the life of the concession. Toll rates must be set in accordance with a Regional Managed Lanes Policy established by NCTCOG and its governing board in 2006, which provides a basic framework to help guide the development of new projects.
TxDOT completed the environmental approvals process for Segment 1 in December 2008 and Segment 2 in October 2009.