Anyone who has ever driven on I-77 during rush hour knows the pain and frustration of being stuck on one of the most congested roadways in the state.
The I-77 managed lanes project is an innovative way to improve travel time along the congested corridor through a public-private partnership with Cintra. Faced with shrinking revenue, a rapidly growing population, and increased infrastructure demand, North Carolina needs this public-private partnership to save taxpayer dollars and speed delivery of the project.
Cintra will secure the majority of the $655 million investment, while NCDOT invests $88 million – only half of its original projection – to improve 26 miles of I-77 between uptown Charlotte and Lake Norman in four years, instead of a multi-decade, piecemeal approach.
This project gives drivers a choice. Those who travel through the corridor can always choose to use the free general-purpose lanes or pay to enter and exit the managed lanes at various points to avoid congestion.
Carpools of three or more people can use the managed lanes for free. The managed lanes will reduce traffic in the free lanes. No toll rates have officially been set for these lanes; Cintra will hold public hearings before setting rates.
The taxpayers are protected. The remaining maximum possible state financial liability is capped at $75 million over 50 years, and only if toll revenues fall significantly short of projections. That’s still within the $170 million originally programmed. Should the company default, the road is still widened, and the state gets the project for roughly half the cost, along with all future revenue.
As a result of the managed lanes, counties in the project corridor will receive a nearly $200 million incentive for other important transportation projects.
The contract and process has been, and will continue to be, open to the public, as well as vetted by a broad array of senior government officials during a two-year due diligence process. That process included more than a dozen public hearings, neighborhood meetings and workshops, as well as more than 40 meetings with mayors, town and city leaders, Metropolitan Planning Organization officials and staff, local legislators, and the Lake Norman Transportation Commission.
NCDOT posted detailed documents related to the bidding process online beginning in March 2013. The state treasurer’s office reviewed the agreement, and the Local Government Commission, which includes the state treasurer, state auditor, secretary of state and secretary of revenue, approved a resolution to allow the project to move forward.
In accordance with state law, NCDOT submitted reports to the Joint Legislative Transportation Oversight Committee, Joint Legislative Commission on Governmental Operations, and the chairs of the Transportation Appropriation Committees, beginning in April 2014. Numerous lenders and other stakeholders have reviewed the contract and will continue to review documents until financial close.
A number of attorneys, including the N.C. Attorney General’s Office, have also reviewed the documents and all issued favorable legal opinions as part of the due diligence process.
Managed lanes are new for North Carolina, and so are public-private partnerships for infrastructure. Strong collaboration, careful planning and community involvement have been important since day one in making sure the I-77 managed lanes project is the most effective way to address a major congestion issue.
Through innovation and transparency, NCDOT is maximizing use of revenues and will deliver much-needed capacity in four years.
This project is about investing in our state and our people.
