At Last: Financial Close for Miami Tunnel PPP
Following nearly four years of procurement efforts, the Port of Miami Tunnel PPP reached financial close on October 15 after an extension of the October 1 deadline. The financing package included $341M senior debt from a consortium of ten banks, $341M federal TIFIA loans, and $80M equity from project sponsors Meridiam Infrastructure (90%) and Bouygues (10%).
The twin two-lane tunnels, slated for completion in 2014, will not be tolled. During the 35-year concession period (five years construction and 30 years operation), milestone and availability payments will come from the Florida DOT ($457M), Miami-Dade County ($402M), and the city of Miami ($50M). FDOT and the municipalities will each contribute 50% of the projected $607M design and construction costs, and FDOT will cover 100% of facility operations and maintenance expenses.
The tunnel represents the second availability-payment PPP in the US, and the first such project to be a pure greenfield development. See June 4, 2009 and December 16, 2008 articles for additional background.
(Bond Buyer 10/19/09, FDOT)