Project Financing and Implementation

Financing for the LBJ Express was completed in June 2010. TxDOT contributed $490 million in public funds and LBJIG provided the remaining $2.155 billion. LBJIG's private equity contributions total $682 million, with 51 percent coming from Cintra, 42 percent from Meridiam, and 7 percent from the Dallas Police and Fire Pension System. (Later in August 2012, a fourth private partner, the Dutch pension fund APG, joined the concession by purchasing a 13.3 percent stake in the project from Meridiam.) The private partners expect to be repaid for their initial investment and receive a return over the life of the concession from toll revenue collections. Toll revenues collected on "interim" managed lane segments which will open during construction of the project, estimated to be $17 million, will also be applied to project implementation costs.

LBJ Express

Additionally, LBJIG took advantage of a federal credit program administered by the U.S. Department of Transportation that reduces financing costs for private developers. They secured an $850 million loan from the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, which provides low cost, flexible credit assistance to transportation projects of national and regional significance. The flexibility provided in TIFIA's debt service schedule was critical to the successful financing of the project.

In addition, LBJIG's financing includes $606 million in tax exempt bonds that TxDOT issued on behalf of LBJIG. These Private Activity Bonds, or PABs, allowed LBJIG to gain access to the tax free municipal bond market, lowering its interest rates substantially. The TIFIA loan as well as the PABs will be repaid from project revenues.

The concession agreement shifts certain risks from TxDOT (and the taxpayer) to the private developer. For example, LBJIG has assumed the risk of lower-than-projected toll revenues. LBJIG's profit will come from the toll revenues with any excess being shared with TxDOT for use on future transportation projects in the region. Texas retains ownership of the land and improvements. LBJIG must hand back to TxDOT a fully operational facility in a prescribed state of good repair when the lease expires.

Trinity Infrastructure designed and built the project. Construction started in 2011 and the full project opened to traffic in September 2015.