- The project won the award in the ‘Public-Private Partnership Financing’ category
ACCIONA, in consortium with Sacyr and Plenary Americas (Calcasieu Bridge Partners), has been honoured by The Bond Buyer magazine for successfully arranging financing for the new I-10 interstate highway in Louisiana (United States). It is the largest and most complex public-private partnership ever undertaken in the state, with $1.332 billion of the total cost to be financed. The project will involve the reconstruction of six lanes of the highway, the construction of several additional structures, the implementation of a ‘free-flow’ toll system and the demolition of the existing bridge.
The partnership between the Louisiana Department of Transportation and Development and Calcasieu Bridge Partners utilises an availability payment structure to minimise the financial risk for the state. This critical infrastructure agreement, supported by toll revenues and private capital, creates a public-private partnership model to address complex transportation needs.
The project relies on both public and private funding. The State of Louisiana will contribute around US$1.196 billion (€1.097 billion) during the construction phase, which will be paid out as construction milestones are reached. The long-term financing arrangement includes an issue of tax-exempt Private Activity Bonds (PABs) worth US$1.332 billion (€1.222 billion). The issue is divided into four different financing tranches, maturing between 2054 and 2066. Taking part in the issue are J.P. Morgan Securities LLC and Wells Fargo Bank, N.A., among others. The remaining private capital will be delivered at the end of the construction period.
The Bond Buyer pays tribute to outstanding achievements in the realm of municipal finance through its Deal of the Year awards, the 23rd edition of which has just been held. The magazine considers a range of factors when judging entries, including creativity, the ability to pull a complex transaction together under challenging conditions, the ability to serve as a model for other financings, and the public purpose for which a deal’s proceeds were used.