Dulles Greenway Concession Agreement

Dulles Greenway Concession Agreement

The greenway was privately funded and built from 1993 to 1995 and had an initial agreement that operational responsibilities would be returned to the Commonwealth of Virginia in 2036. To finance Greenway, TRIP II Limited Partnership provided $40 million in equity and secured $310 million in private taxable debt. Ten institutional investors, led by CIGNA Investments, Prudential Power Funding Associates and John Hancock Mutual Life Insurance Company, provided $258 million in long-term fixed income (maturing in 2022 and 2026). Three banks (Barclays, NationsBank and Deutsche Bank AG) agreed to provide part of the mortgage and $40 million in revolving loans. Loans were to be repaid with toll revenues, and financing was secured by an initial mortgage and security in the developer`s rights, title and interest in the facility. TRIP II, a limited partnership, holds the concession to operate the greenway until February 15, 2056. The greenway has seven toll booths, including a main customs office (with 18 lanes) and six toll ramps. ETC is available at each toll booth, with 10 dedicated ETC lanes on the main toll line. The greenway is designed to allow for future expansion of its current six lanes to 12 lanes, as the right-of-way is located on land acquired by TRIP II fees simply or through an easement agreement with the local airport authority. A typical section of the greenway is 250 feet wide and offers potential for future pavement widening. The refinancing of TRIPS II in 1999 – $332 million in AAA obligations, replacing all ongoing agreements, was provided by MBIA and included: The legislation allows requests for changes to the toll cap by the concessionaire, a third party or the SCC itself. At the end of August 2005, Macquarie Infrstructure Trust (MIG) entered into an agreement to acquire an 86.7% economic stake in TRIP II, of which 0.1%, acquired through a 100.0% direct interest in the general partner, which is responsible on a day-to-day basis for the management and operation of the concession. TRIPS II, which was still facing financial difficulties, restructured its debt in 1999 and agreed to extend the project.

In 2001, the Virginia State Corporation Commission (SCC) extended the trip II concession period by 20 years, until 2056. In September 2004, variable peak hours and updated point-to-point tariffs were introduced during off-peak hours to better cope with congestion during peak hours. Operator – Autostrade International of Virginia O&M, Inc., a subsidiary of italian company Autostrade for Italy S.p.A MIG in 2005 – Macquarie raised funds for its investment in TRIP II by placing private shares in Australia. Macquarie also raised funds in New York through the $425 million free float of shares in the Macquarie Global Infrastructure Total Return Fund. Macquarie used the funds generated by these sales to make several purchases. On October 13, 2020, the SCC hearing examiner dulles Greenway released his report. The recommendations contained in the report are advisory in nature only and do not preclude the SCC from taking another view or gathering other evidence. A copy of the report is available below: 1. Estimated economic interest held by subordinated loans of approximately 86.6% secured by equity held by other limited partners.

Remaining 13.4% equity-owned stake. Section 56-542 of the Virginia Highway Corporation Act (1988) states that toll rates must be set at a level that: As Loudoun County continues to grow, the greenway should be well positioned to provide quality capacity and service and attract more of the corridor`s future growth, with the ability to expand, to meet future demand. Upon request, tolls on the greenway are set by the Virginia State Corporation Commission (SCC) under the Virginia Highway Corporation Act (1988). In May 2017, ALX acquired the remaining estimated economic interest of 50.0% of MIP, bringing ALX`s estimated economic interest to 100.0%. The Greenway is part of an important highway in one of the most prosperous and fastest-growing counties in the United States, connecting Dulles International Airport to Leesburg, Virginia, via Loudoun County. The greenway currently has peak and secondary toll rates, as well as different toll rates for vehicles with three or more axles. Further information can be found in the factsheet. ALX has an estimated 100% economic interest in the greenway. On September 29, 2005, MIG acquired the remaining 13.3% of trip II`s direct shares from Kellogg, Brown and Root (KBR).

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