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Virginia, Transurban reach $460m P3 deal

The Aussie developer will build, maintain and operate a 13km extension of I-395’s express lanes in a bid to alleviate traffic in ‘one of the most congested corridors’ in the US.

A $460 million P3 project to extend the I-395 express lanes in Virginia has been approved by the state’s Department of Transportation, with financial close targeted for mid-2017.

The project will come under the 95 Express Lanes Comprehensive Agreement between the state and Transurban, an Australian toll road developer which also operates the 95 and 495 express lanes. The new agreement will extend the 395 express lanes for 13km from Turkeycock Run near Edsall Road in Alexandria to the Washington, DC border in a move aimed at reducing traffic congestion.

Construction is expected to begin this month and finish in late 2019, with the Lane Construction Company, a subsidiary of Italy’s Salini Impregilo Group, appointed as the contractor. Virginia Governor Terry McAuliffe called the plan’s approval “the latest step in our ongoing effort to move more people and provide more travel choices in one of the most congested corridors of the country”.

Transurban will collect tolls on the roadway, with the charge varying based on real-time traffic conditions. In addition to building, maintaining and operating the extension, Transurban will provide a $15 million annual transit investment, which will grow by 2.5 percent annually, to the state for further enhancements. Other components of the project include several road improvements and lane additions, the rehabilitation of five bridges and the construction of new sound walls.

“Transurban has worked with VDOT to develop a multi-modal solution which offers our customers new travel choices on Interstate 395,” said Transurban chief executive Scott Charlton.