Cintra team closes $1.35bn Texas road

A Cintra-led consortium has achieved financial close on Segment 3A, part of the North Tarrant Express highway project in Texas.

NTE Mobility Partners Segment 3, the consortium led by Ferrovial subsidiary Cintra Infraestructuras, has achieved financial close for a concession to extend Segment 3A, a 6.5-mile stretch of the North Tarrant Express (NTE) highway in Texas’ Dallas/Fort Worth area.

The consortium, which also includes Meridiam Infrastructure, the Dallas Police and Fire Pension System and APG, will upgrade existing lanes which will be toll free, and build two additional managed lanes in each direction which will use electronic tolling.

The project, estimated to cost $1.35 billion, will be financed through a combination of public and private funds, including a TIFIA (Transportation Infrastructure Finance and Innovation Act) loan, funding from the Texas Department of Transportation (TxDOT), private activity bonds, and equity.

“We are very pleased to have successfully attained financial close for this project,” Cintra chief executive Enrique Díaz-Rato said. “We have achieved an efficient capital structure despite the complex situation at present.”

In addition to expanding Segment 3A, the consortium will also operate and maintain the entire roadway, which includes 3B, another 3.6-mile section built by TxDOT.

The 43-year concession will start from mid-2018 when the highway is scheduled to open.

The project represents Cintra’s fourth in Texas with a managed investment totaling more than $7.4 billion, according to a statement. Another Cintra-led consortium won a contract to develop the first two sections of NTE in 2009.

Also in the US, the company operates Chicago Skyway and Indiana Toll Road.