The ACS Group is awarded the concession of the SH-288 toll motorway in Texas, with an investment budget of EUR 954 million
This concession will be for 52 years and will include the design, construction, financing, operation and maintenance
27.02.2015
The ACS Group continues its strategic expansion and development process in North America, where it has obtained a new 52-year concession contract for the design, construction, financing, operation and maintenance of the SH-288 toll motorway in Texas. The award has been achieved through the consortium led by Iridium and its American subsidiary, ACS Infrastructure Development, together with Dragados USA, as constructor.
The project consists of the financing, design and construction of 16.5 kilometres of toll roads (two lanes in each direction) in the central reservation of the SH-288 motorway, which is one of the main axes of the city of Houston and one of the most congested routes in the region. Additionally, it will include a direct connection giving access to the Texas Medical Center and eight direct connections to Beltway 8, as well as the maintenance and exploitation of another four conventional lanes in each direction. The construction period will be 4.5 years.
The SH-288 has public and private sources of financing. The State of Texas will contribute approximately EUR 15 million during the construction. It is expected that the long-term private funding will include a TIFIA loan from the Federal Government of the United States and an issue of tax-free bonds, known as "private activity bonds". The rest of the private capital will be injected at the end of the construction period, and it will be guaranteed through letters of credit provided by the partners of the Blueridge Transportation Group concessionaire.
Consolidation of the ACS Group in the North American concessions market
The award of the SH-288 toll motorway represents a further step in the consolidation of the ACS Group in the North American infrastructure market, in which, since its arrival in 2006, it has become one of the most important concessionaires.
The ACS Group is developing more than USD 9 billion of infrastructure in North America, including the Portsmouth Bypass in Ohio, which reached its financial close in December 2014, and the I-595 Express motorway which was opened in March 2014.
Furthermore, ACS is the leader in the ranking of international construction companies drafted by the ENR publication and has occupied top spot in the international ranking of infrastructure investors developed by the Public Works Financing publication since 1994.
In addition to the Portsmouth Bypass in Ohio and the I-595 Express in Florida, its concession projects in the USA and Canada notably include the new light metro line in Ottawa, the A-30 motorway in Montreal (open to traffic in December 2012), the South Fraser Perimeter Road in Vancouver (open to traffic in December 2013), the Rt. Hon. Herb Gray Parkway in Ontario and the Edmonton (North East Anthony Henday) bypass in Alberta.
The project consists of the financing, design and construction of 16.5 kilometres of toll roads (two lanes in each direction) in the central reservation of the SH-288 motorway, which is one of the main axes of the city of Houston and one of the most congested routes in the region. Additionally, it will include a direct connection giving access to the Texas Medical Center and eight direct connections to Beltway 8, as well as the maintenance and exploitation of another four conventional lanes in each direction. The construction period will be 4.5 years.
The SH-288 has public and private sources of financing. The State of Texas will contribute approximately EUR 15 million during the construction. It is expected that the long-term private funding will include a TIFIA loan from the Federal Government of the United States and an issue of tax-free bonds, known as "private activity bonds". The rest of the private capital will be injected at the end of the construction period, and it will be guaranteed through letters of credit provided by the partners of the Blueridge Transportation Group concessionaire.
Consolidation of the ACS Group in the North American concessions market
The award of the SH-288 toll motorway represents a further step in the consolidation of the ACS Group in the North American infrastructure market, in which, since its arrival in 2006, it has become one of the most important concessionaires.
The ACS Group is developing more than USD 9 billion of infrastructure in North America, including the Portsmouth Bypass in Ohio, which reached its financial close in December 2014, and the I-595 Express motorway which was opened in March 2014.
Furthermore, ACS is the leader in the ranking of international construction companies drafted by the ENR publication and has occupied top spot in the international ranking of infrastructure investors developed by the Public Works Financing publication since 1994.
In addition to the Portsmouth Bypass in Ohio and the I-595 Express in Florida, its concession projects in the USA and Canada notably include the new light metro line in Ottawa, the A-30 motorway in Montreal (open to traffic in December 2012), the South Fraser Perimeter Road in Vancouver (open to traffic in December 2013), the Rt. Hon. Herb Gray Parkway in Ontario and the Edmonton (North East Anthony Henday) bypass in Alberta.