Virginia wades deeper into the promise of P3
Virginia announced a $940 million dollar P3 agreement with Flour-Transurban. The agreement calls for the construction of a 29 mile hot lane to ease the Virginia's traffic congestion, especially during rush hour.
The agreement calls for Fluor-Transurban to pay $843 million and Virginia to $97 million. Most of the current lanes will be toll free, as will be HOV-3 vehicles. Other vehicles will pay a toll that will vary in amount depending on the volume of traffic.
The Agreement's Key aspects include:
- Fluor-Transurban will design and build the facility; manage and fund all operations and maintenance for a period of 73 years following construction. It will also share revenue with the Commonwealth.
- Maintain free access for High Occupancy Vehicles (HOV) meeting state eligibility requirements and buses.
- Develop and operate a dynamic tolling system. Tolls will vary based on demand to provide fast, reliable travel times.
- All tolls will be paid with an E-ZPass and there will be no toll booths.
- Electronic signs will alert travelers to current toll rates so they can make an informed choice whether or not to use the HOT Lanes.
- Return the asset to the Commonwealth in good working order at the end of the agreement
The agreement is the latest in Virginia's foray into the P3 delivery method to meet a public need by partnering with the private sector.