Project Financing and Implementation
| With a total capital cost of $2.877 billion, the I-4 Ultimate project is one of the largest and most expensive highway improvements to be built in Florida. I-4 Mobility Partners is financing the project using a variety of sources. The largest is a $949 million direct loan from a federal credit program known as the Transportation Infrastructure Finance and Innovation Act, or "TIFIA." The loan is being made in two parts. The first is a $127 million short-term loan that will be repaid upon project completion and receipt of final acceptance payments from FDOT by 2021. The remaining $822 million will be repaid from future availability payments by 2052. TIFIA provides low cost, flexible credit assistance to transportation projects of national and regional significance. In the case I-4 Ultimate, TIFIA's low interest rate saved the project nearly $69 million (in 2014 dollars) compared to I-4 Mobility Partners' original financial proposal. I-4 Mobility Partners has also borrowed $484 million from commercial banks, has invested $103 million of its own at-risk equity in the project, and will net $306 million in capitalized interest. | I-4 Ultimate
|
I-4 Mobility Partners reached financial close on the same day it signed its concession agreement with FDOT, just four-and-a-half months after being awarded the I-4 Ultimate procurement. In addition to its financing, the I-4 Mobility Partners will receive a total of $1,035 million in milestone payments during the 2015 to 2019 construction period, as well as additional final acceptance payments from FDOT totaling $688 million in 2020 and 2021. The company will also receive annual availability payments during the operation and maintenance period. FDOT will retain ownership of the I-4 throughout the concession period, set the toll rates, and manage the toll collection.
FDOT is funding 57 percent of its construction and availability payment costs from toll revenue on the I-4 Express lanes and an additional 20 percent from the Strategic Intermodal System program. It is using a variety of additional regional, state, and federal revenue sources to cover the remaining 23 percent of the project cost. FDOT will set toll rates on the I-4 Express Lanes and the tolls will be collected by Florida's Turnpike Enterprise, which is also procuring the toll collection equipment.
I-4 Mobility Partners broke ground on the I-4 Ultimate project in February 2015 and expects construction to be completed in 2021.