Tolls for a new U.S. 460 could reach $11 per car

NORFOLK

Three groups of private companies vying to build a new U.S. 460 between Suffolk and Petersburg estimate the project will cost $1.44 billion to $1.8 billion. Tolls would range from $5.50 to $11 for cars and up to $22 for trucks.

Details of the three plans were released Friday as the Virginia Department of Transportation completed its review of the proposals, which were submitted last month in response to a solicitation on the project.

A new, interstate-quality U.S. 460 is Gov. Bob McDonnell's top transportation priority, which he hopes will serve as a public-private partnership model for building roads in Virginia.

The proposals will be passed on to an independent review panel to be appointed by the transportation secretary. That panel is scheduled to complete its review in mid- to late January.

VDOT's goal is to have an agreement with one of the proposers to build the road by this time next year.

The bidders are Cintra Infraestructuras S.A.U., which includes the Spanish construction company by the same name; 460 Partners Inc., which includes Skanska USA Civil Southeast, AECOM, Moreland Property Group and Infrastructure Capital Partners; and MultiModal Solutions LLC, which includes Kiewit Construction, the Louis Berger Group, Clark Construction and Shirley Contracting.

The project calls for building a 55-mile, four-lane, divided highway south of the existing U.S. 460. Planners said it would reduce congestion into and out of Hampton Roads, and help emergency evacuation, freight movement and military connectivity.

With dwindling state dollars and public resistance to high tolls, VDOT sought innovative ideas for operating and financing of the project.

The state said it was willing to contribute some money to the project but did not specify how much. One of the proposals does not require a state contribution, while the other two seek a subsidy of $500 million to $1.18 billion.

Ideas offered by the proposers include:

-- A "make whole" provision in which the state would contribute money only if the operation of the toll road does not meet its revenue target. The proposal also includes a profit-sharing provision for the state if the operation meets a certain revenue threshold.

-- Instead of an up-front state subsidy, VDOT could make ongoing payments to the private operator that would allow the project to have an increased debt-servicing capacity.

-- Creating a regional economic development authority to attract investment to the area, thereby increasing demand for the road.

-- Creating partnerships with the Virginia Port Authority and the Virginia Economic Development Partnership to enhance economic development in the corridor.

-- Setting the speed limit at 75 mph as an incentive for potential users.

-- Adding a tolled, truck-only lane to the U.S. 58 bypass in Suffolk, which connects to U.S. 460.

-- Reduce costs by building only five interchanges initially and adding another four in phases as demand requires.

Each proposal calls for electronically collected tolls and toll rates that would escalate over time, between 2 percent and 3 percent per year.

It's the state's second attempt at securing a partner for U.S. 460. VDOT received three proposals in 2006, which ranged from $1 billion to $1.9 billion and required up to $734 million in state money. Tolls would have reached $13.

VDOT Commissioner Greg Whirley terminated that procurement process because of "changes in market conditions" and issued the new solicitation for proposals.

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com