Financing and Construction Teams Build Off of I-495 HOT Lanes Success
IRVING, Texas--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that its subsidiary, Fluor Enterprises, Inc., and its partner, Transurban DRIVe USA Investments LLC, reached financial close and entered into a Comprehensive Agreement with the Virginia Department of Transportation (VDOT) for the financing, design-build, operation and maintenance of approximately 29 miles of High Occupancy Toll (HOT) lanes along Interstate 95 in Stafford and Fairfax Counties in Northern Virginia. Fluor is participating both in the financing and design-build aspects of the project. The I-95 project will expand and improve the existing High Occupancy Vehicle (HOV) lanes in one of the most congested regional corridors in the United States.
Fluor serves as the managing partner of the construction joint venture (Fluor-Lane 95 LLC) with The Lane Construction Corp on the overall $925 million I-95 project. Fluor will book approximately $691 million for the design and construction contract in the third quarter of 2012. Construction is scheduled to begin in August 2012 and be completed in late 2014.
Fluor and Transurban formed 95 Express Lanes LLC as a special purpose vehicle for the 75-year concession. Transurban will be the majority owner of the concession company with a 90 percent share and Fluor will be a 10 percent minority owner.
“This is a historical day for transportation and the economy in Virginia,” said Virginia Governor Bob McDonnell. “In partnering with the private sector, VDOT is leveraging nearly $1 billion dollars in congestion relief for the heavily traveled Northern Virginia region. Virginia is taking bold action to move more people with fewer cars by giving them more transportation choices that will save time and money, and improve the environment. The project will also support nearly 8,000 jobs over the construction period and stimulate $2 billion in economic activity.”
“Fluor and our partners at Transurban and Lane Construction have achieved great success on the 495 HOT Lanes project helping alleviate congestion and providing Virginia and D.C.-area commuters with new options,” said Herb Morgan, senior vice president and head of Fluor’s Infrastructure business. “Local elected leaders and VDOT officials have again proven that Virginia is a leader in deploying innovative transportation solutions. We look forward to helping the Commonwealth improve its economic infrastructure and executing this project on-time and on-budget and in a manner that values the safety of our workers and local drivers.”
The principal components of the I-95 project financing will include: approximately $253 million in Private Activity Bonds; $300 million in a federal TIFIA loan that is expected to close in the fourth quarter of 2012; $292 million from Transurban and Fluor; $71 million in public funds from VDOT; and $9 million in other funds.
The key components of I-95 construction project include:
- Extending nine miles of existing HOV lanes from Dumfries to Garrisonville Road in Stafford County;
- Expanding existing HOV lanes from two to three lanes for 14 miles between Prince William Parkway to vicinity of Edsall Road on I-395;
- Making operational improvements to the existing two HOV lanes for six miles from Route 234 to Prince William Parkway;
- Adding eight new or improved access points to and from HOV/HOT network at key interchanges; and
- Expanding and adding commuter parking lots.
For more information about the I-95 project, go to www.VAmegaprojects.com.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Founded in 1912, the company was started by John Simon Fluor Sr. with a modest investment of $100. Since those humble beginnings, the company has grown into one of the largest engineering & construction companies in the world. Fluor is celebrating its 100th anniversary during 2012.
Today, through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in engineering, procurement, construction, commissioning, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and had revenue of $23.4 billion in 2011. For more information, visit www.fluor100.com and www.fluor.com.
Fluor CorporationMedia Relations:Keith Stephens, 469-398-7624orBrian Mershon, 469-398-7621orInvestor Relations:Ken Lockwood, 469-398-7220orJason Landkamer, 469-398-7222