North Carolina has denied a proposal to take down the I-77 HOT lanes P3 project and preserves the P3 project agreement. The bill died in the Senate before coming to a vote.

As we reported in early June, the North Carolina House of Representatives voted to cancel the contract for the I-77 Express Lanes P3 project after construction already began.

Legislators voted 81-27 in favor of HB 954, which would end the state’s Interstate 77 project. Critics argued that cancelling the project was justified because the agreement was not in the state’s best interests, the location of planned entrance and exit ramps would negatively affect local businesses and that the state would be unable to add free lanes to the project for the life of the agreement. The financial problems of Cintra subsidiaries with SH 130 Concession Company, LLC and Indiana Toll road operator filing for Chapter 11 protection did not help either.

According to sources, the estimated cost related to the cancellation of the P3 agreement would have reached US$800 million including US$300 million in penalties and US$500 million for the completion of the project with no private partner.

The total project investment is estimated at US$655 million, construction started in 2015 and the road is expected to be operational by 2018.

Cintra Infraestructuras was awarded the project in April 2014. Commercial closure was achieved last summer and the financial closure was achieved in May 2015.

The project includes road widening, in both directions, along 26 miles (41.8 km) of the I-77 in the metropolitan area north of Charlotte, between the junctions with the I-277 in Charlotte and the NC-150 in Iredell County. To improve traffic in one of the fastest-growing areas of the state, the existing highway will be rebuilt and capacity will be increased by creating managed lanes, subject to variable electronic tolls, which will help reduce congestion and improve traffic flow in the corridor.

The project is divided into three segments:

• on the southern segment (2.2 mi, 3.5 km), the existing section will be upgraded and two managed lanes will be built in each direction;
• on the central segment (14.9 mi, 23.8 km), the existing lanes will be upgraded and two managed lanes will be built in each direction;
• on the northern segment (8.8 mi, 14.2 km), the consortium will build one new managed lane in each direction.