Mississippi Transportation Dept. Seeks Private Partners for Parkway

BRADENTON, Fla. — The Mississippi Department of Transportation is seeking prospective concessionaires to enter into the state's first public-private partnership to build a new toll road estimated to cost as much as $500 million.

The 12-mile toll road, called the Airport Parkway, will be built primarily to create a direct connection between downtown Jackson, the capital, and Jackson-Evers International Airport. Responses to the request for qualifications are due Aug. 1.

The concession, to be for 50 years, is expected to fully fund and accelerate construction of the Airport Parkway project, which has been under consideration for many years. No state funding will be available other than $32 million the state DOT already has spent on design and some right of way acquisition.

The RFQ states that "MDOT may assist the developer in accessing the Transportation Infrastructure Finance and Innovation Act program, private activity bonds, and other potential sources of funding which are subject to federal requirements and availability."

"This will be the first time that MDOT has initiated a procurement for the construction, financing, operation, and maintenance of a toll road in Mississippi, and thus presents a unique, ground-floor opportunity for responders to work with MDOT in developing a project whose framework may serve as the basis for additional toll road projects elsewhere in the state," said Larry "Butch" Brown, executive director of the DOT.

The need for the parkway has been prompted by significant population and economic growth over the past decade in the Jackson metropolitan area, which is experiencing congestion on existing roadways, including the corridors east of Interstate 55 and I-20 in the cities of Flowood and Pearl, MDOT officials said.

"Given the anticipated future growth in residential and commercial development, these congested conditions are projected to worsen in the future," according to a special Web site on the project at www.theairportparkway.com.

The project consists of a new, access-controlled, high-speed toll road east of downtown Jackson beginning at I-55, crossing the Pearl River, traveling east into the cities of Flowood and Pearl, and terminating near the airport.

Under the current schedule, the MDOT said it expects construction on the toll road to begin in February 2010 and for it to be open to traffic by the end of 2012.

Like many states using P3s, Mississippi DOT officials say they are using privatization because state fuel taxes are not keeping pace with construction needs. Additionally, the state has seen a dramatic increase in the cost of construction.

Since 2001, highway construction costs in the state have increased 94%, which is an average of 16% a year.

While MDOT's revenue has been deteriorating, the state's transportation needs have escalated. Highway and bridge needs include maintenance and modernization needs on the current transportation system, and new roads to add capacity.

The projected highway and bridge program through 2016 is estimated to cost $12.5 billion. However, projected revenues will only total $8.5 billion, leaving a $4 billion funding gap, officials said.

Once the MDOT receives qualifications from firms or consortiums, a short list of qualified firms will be asked to submit proposals for the concession. State officials said a time frame for awarding the concession would be announced at a later date.

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