The Virginia Department of Transportation (VDOT) in the US has signed a comprehensive agreement with joint venture (JV) 95 Express Lanes to construct 29 miles of express lanes on interstate 95 (I-95).
The JV will finance $854m towards the project, which includes a $300m TIFIA loan, with VDOT contributing $71m.
As per the terms of the agreement, VDOT will own the infrastructure and supervise the JV's activities, while 95 Express will finance, build, operate and maintain the facility for a 76-year concession period.
The JV is expected to deliver the project on a performance, fixed-price and fixed-date contract to save cost overruns and project delays.
The high occupancy vehicle (HOV) lanes will provide a free passage for vehicles with three or more people, while for vehicles with one or two passengers the department will charge tolls.
Virginia Governor McDonnell said in partnering with the private sector, VDOT is leveraging nearly $1bn in congestion relief for the heavily travelled 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," McDonnell added.
The project work will also extend nine miles of existing HOV lanes, upgrade two-road HOV lanes to three roads, improve existing two HOV lanes for six miles, and add eight new access points to HOV lanes and toll networks at key interchanges.
Construction work will start early in September 2012.