Nossaman Helps Florida Department of Transportation Close $900 million Deal
Port of Miami Tunnel Project to Be Delivered as Public-Private Partnership
LOS ANGELES (October 15, 2009) – Today, Nossaman's client, the Florida Department of Transportation (FDOT), announced at a press conference in Miami that it has reached financial close on the Port of Miami Tunnel Project.
FDOT, in partnership with Miami-Dade County and the City of Miami, entered into an agreement with MAT Concessionaire, LLC (MAT) which includes Meridiam Infrastructure Finance, S.a.r.l. and Bouygues Travaux Publics as equity members. The $900 million public-private partnership (PPP) deal uses an availability payment structure that provides for payment to MAT over 30 years after completion of construction, which is expected to occur in five years. This is the second transportation infrastructure project in the United States to use an availability payment structure, following the recently closed FDOT I-595 Corridor Improvements Project. A Nossaman team, led by Patrick Harder advised FDOT on both deals.
"FDOT is to be commended for its vision and its tenacity in bringing these projects this far," Mr. Harder said. "They are at the forefront of the PPP industry, and will serve as an example for other states."
Financing for the project includes a $341 million low-cost federal loan through the Transportation Infrastructure Finance and Innovation Act, equity contributions from MAT, and $330 million in loans from the following senior lenders:
- BNP Paribas
- Banco Bilbao Bizcaya Argentina
- RBS Citizens
- Banco Santander
- Bayerische Hypo
- Calyon, Dexia
- ING Capital
- Societe Generale
Bouygues Civil Works Florida, Inc. will design and construct the project with engineering assistance from Jacobs Engineering Group, Inc. VMS, Inc. will serve as the lead operations and maintenance contractor. In addition to Nossaman, FDOT's advisors include Jeffrey Parker & Associates (financial), Parsons Brinkerhoff and T.Y. Lin (technical), and Marsh (insurance).