A $1.5 billion public-private partnership (PPP; P3) to demolish the Goethals Bridge and erect a modern bridge in its place has reached financial close, the Port Authority of New York and New Jersey said.
The Port Authority hired ‘NYNJ Link Partnership,’ a consortium teaming Macquarie Group and Kiewit Corporation, in April.
“Reaching financial close is another significant milepost,” Patrick Foye, executive director for Port Authority, said in a statement.
Foye, named executive director in 2011, went on to laud the project as “the first true surface transportation public-private partnership in the [US] Northeast region”.
The P3 is receiving a $474 million Transportation Infrastructure Finance and Innovation Act of 1998, or TIFIA, loan. The Port Authority also undertook a $457 million bond offering to finance the project.
Macquarie and Kiewit will contribute $113 million in equity. The design, build, operate, finance and maintain (DBOFM) concession has a 40-year availability payment lease.
Macquarie Infrastructure and Real Assets (MIRA) is responsible for 90 percent of the equity contribution, with Kiewit Development accounting for the remaining 10 percent. Macquarie Capital is advising NYNJ Link Partnership.
The 85-year-old Goethals Bridge is a 7,100-foot steel truss cantilever bridge running from Staten Island, New York, to Elizabeth, New Jersey.
The replacement bridge is a planned six-lane, cable-stayed structure expected to open to traffic in 2016.