Project Financing and Implementation

The concession also contemplates the Parkway's extension 2.3 miles south to SH 128 in Broomfield by the end of 2018. If the extension is approved, the concessionaire will release $40 million placed in escrow at financial close to the Authority to cover the cost of construction. In the event that a second extension of the Parkway to SH 93 at 64th Avenue in Arvada, 15 miles southwest of the initial extension is approved, the concessionaire must contribute an additional $60 million for its construction. Northwest Parkway LLC has the right to toll, operate, and maintain these potential extensions, and the concession agreement states that the City of Broomfield and Northwest Parkway LLC "shall use their best efforts" to ensure that the extension to SH 93 is approved. Including the funds set aside for the two extensions, Northwest Parkway LLC's total payment for the concession was $603 million.

Northwest Parkway LLC financed these payments with $459 million in senior bank debt and $266.9 million in equity. Brisa contributed 90 percent of the equity while CCR contributed the remaining 10 percent. (CCR sold its stake in the toll road to Brisa in May 2009.) The senior bank debt is composed of three parts: a $249 million, 10-year term loan; an 11-year, $60 million equity bridge (this is a short-term loan that allows the holder of the debt to enter into financial transactions before longer-term financing is secured), and a $150 million, 10-year liquidity facility (a short-term loan that is intended to cover any shortfalls in cash flow).

The debt was provided by a group of European banks including BNP Paribas of France, Caja Madrid of Spain, and Caixa Geral de Depósitos of Portugal, who saw the concession as a long-term investment in a corridor that was likely to experience growth in population and employment.

The concession agreement included many provisions regarding the operation of the existing facility. While it does not have a non-compete clause, the Authority is required to compensate Northwest Parkway LLC if certain transportation facilities are built and the private partner can demonstrate that toll revenues declined as a result. In addition, if the Authority or other public entities take actions that reduce the value of the concessionaire's financial interest in the agreement, the Authority is required to compensate the concessionaire.

The concession agreement permits annual increases in toll rates based on the greater of an adjustment for inflation, increase in per capita GDP, or two percent. In the event that Northwest Parkway LLC's profits exceed certain levels, it is required to share excess revenue with the Authority. In the event that traffic demand exceeds the current capacity of the facility, Northwest Parkway LLC is allowed to widen the highway. However, no public funds will be available for a widening project.

As part of the concession agreement, Northwest Parkway LLC was required to consider all employees of the Authority, other than the Executive Director, for employment opportunities. If the company did not make an offer of employment on equivalent terms as the Authority had, it had to pay the employee an amount equal to 12 months of salary, inclusive of health insurance and retirement benefits.

In January 2010, Northwest Parkway LLC upgraded the toll collection facility on the Parkway, converting the facility to all-electronic toll collection, improving traffic flows and reducing operating costs by eliminating cash toll collection. This was the first major upgrade of the toll collection system since tolling began six years earlier.

In mid-2016, Brisa solicited bids to sell the concession, and in December 2016 selected from among 11 bidders a consortium of infrastructure investment funds comprising Northleaf Capital Partners (Canada), DIF (Netherlands), and HICL Infrastructure Company (U.K.). The sale price was a reported $500 million.