Financial Close on this $1.5 billion project represents a major win for Skanska in the U.S., and of equal benefit to our client and residents in the project area. The project validates PPP as a viable alternative for funding massive infrastructure projects – projects that might not otherwise be possible with limited public funding.
About the Project:
Highlights of the project include:
- Construction of a brand new, two-lane tunnel under the Elizabeth River, adjacent to the existing Midtown Tunnel;
- Extending the MLK from London Boulevard to Interstate 264 with an interchange at High Street;
- Minor modifications to the interchange at Brambleton Avenue/Hampton Boulevard in Norfolk;
- Maintenance and safety improvements to the existing Midtown & Downtown Tunnels.
Construction and renovation activities begin immediately with construction completion expected August 2018.
Skanska and its partners will finance, build, operate and maintain the project during a 58-year concession agreement, assuming full market risk on traffic and tolls. Skanska and Macquarie are project sponsors with Skanska-Kiewit-Weeks Marine as the Design Build Construction Joint Venture. The client is the Virginia Department of Transportation (VDOT).
Benefits of the Project:
The economic impacts of the project will be substantial, with creation of over 500 project-direct jobs and more than 1,500 indirect jobs in the surrounding communities. Gross regional productivity is expected to increase by up to $254 million annually due to improved traffic flow and increased connectivity to the various port facilities and other businesses in the region. Other benefits will include:
- Reduced emissions and congestion: The average round trip driver at the Midtown Tunnel will save about 30 minutes a day, saving fuel costs and reducing emissions.
- Free-flow tolling system with E-ZPass: Toll roads operate more efficiently and safely without toll booths. “Gantries” over the roadway collect the toll electronically—with no cash option, no stopping or slowing.
- Upgraded life-safety and evacuation readiness: With the opening of the new Midtown Tunnel, there will be two lanes going east, two going west. Bi-directional traffic in the existing Midtown Tunnel will be eliminated, increasing the capacity for emergency response and evacuation readiness.
- Increased accessibility to jobs, medical facilities and more: Increased travel options will provide greater accessibility to jobs, educational facilities, medical services, shopping and recreational activities.