This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The partnership between the Texas Department of Transportation (TxDOT) and the Blueridge Transportation Group (BTG) has reached financial close on the SH-288 highway P3 project in Texas, USA.

The total project investment is estimated at US$825 million. Project financing includes US$272.6 million of senior private activity bonds (PABs) issued by the Texas Private Activity Bond Surface Transportation Corporation on behalf of BTG, and US$357 million subordinated loan granted under the Transportation Infrastructure Finance and Innovation Act (TIFIA) to BTG.

The project reached financial close on May 9. The PABs were issued at a premium, raising US$298.6 million in proceeds. 

BTG is a special purpose entity that were awarded a 52-year concession by the Texas Department of Transportation (TxDOT) to design, build, finance, operate and maintain the SH-288 highway P3 project. The concessionaire owners include:

• ACS 288 Holdings, LLC (ACS Infrastructure, 21.62%),
• S&B 288 Holdings, LLC (Shikun & Binui, 21.62%),
• InfraRed 288 LLC (InfraRed Capital Partners, 21.62%),
• Northleaf SH288, LLC (Northleaf Capital Partners, 18.03%),
• Clal Houston Road RH, LP and Clal Shoreland RH, LP (Clal, 12.11%), and
• Star America SH-288, LLC (Star America Infrastructure Partners, 5.00%).

The SH 288 project will be delivered as a toll concession project under a comprehensive development agreement or CDA, the first of its kind in the Houston District. 

The 16.6 km project includes the construction of four tolled lanes, two in each direction within the existing SH 288 median, from US 59 to the Harris/Brazoria County line. The project also includes the construction of a new Beltway 8 interchange, including construction of all eight direct connectors (DCs); reconstruction of all eight direct connectors at I-610 with added access to toll lanes; and two new-tolled direct connectors to the Texas Medical Center. 

SH 288, which runs from downtown Houston to southern Brazoria County, provides a vital route for commuters as well as for freight and commercial trucking. It also serves as a hurricane evacuation route. The SH 288 Toll Project aims to help to accommodate additional traffic and improve access to the Texas Medical Center and downtown Houston while improving the operational efficiency of SH 288.

Texas Transportation Commission Vice Chair Jeff Moseley stated:

“We are pleased that the FHWA granted Texas this TIFIA loan and look forward to working with the local community to bring this needed mobility effort to Houston. Having these funds available to our state allows us to build much-needed infrastructure in our largest metropolitan area. TIFIA is an outstanding program offered by the federal government that ramps up highway construction in a time when there is such demand for more highways.”