Virginia seals $3.8 billion Hampton Roads Bridge-Tunnel deal

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Virginia signed financing and comprehensive agreements Thursday using a design-build model to advance the state’s largest-ever transportation project.

Gov. Ralph Northam said parties to the $3.8 billion Hampton Roads Bridge-Tunnel expansion project completed the necessary documents to begin work widening a 12-mile stretch of Interstate 64 between Hampton and Norfolk, and adding two new subsea tunnels to the Hampton Roads Bridge-Tunnel.

“This expansion will address some of our most pressing transportation challenges and unlock opportunity for families, military personnel, and businesses not only in the Hampton Roads region, but across the Commonwealth,” Northam said.

“These agreements are a culmination of the diligent work and extensive negotiations by our dedicated teams over the past year to deliver significant improvements to reduce daily congestion, increase safety, and enhance connectivity throughout this key corridor," he said.

The state had initially planned to use a public-private partnership to complete the project. It later determined that a design-build model was more suitable using local, state and federal funding.

In that regard, Thursday’s milestone event included signing the funding and administration agreement with the Hampton Roads Transportation Accountability Commission.

The commission will pay $3.562 billion of the cost, using debt and cash. Another $345 million is expected to come from toll revenue bonds. The commission funds its program from gas taxes and other fees.

The Virginia Department of Transportation plans to contribute $108.5 million from its budget and another $200 million from a separate VDOT program. Federal funds are also being sought, according to VDOT.

The Dragados USA-led design-build team, Hampton Roads Connector Partners, also ceremonially signed the comprehensive agreement, which includes a $3.3 billion fixed price and a completion date of Nov. 1, 2025.

Other members of the design-build team are lead contractor HDR, lead designer Mott MacDonald, Flatiron Constructors, Vinci Construction, and the French construction company Dodin Campenon Bernard.

“The Hampton Roads Bridge-Tunnel Expansion Project is the most significant project in generations for Hampton Roads,” said VDOT Commissioner Stephen Brich. “This project, the largest transportation project in VDOT’s history, will ease congestion in southeastern Virginia and add much needed capacity to one of the region’s most congested corridors.”

More than 100,000 vehicles currently use the road and tunnels targeted for expansion during peak travel periods.

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Transportation industry Toll revenue bonds Revenue bonds Ralph Northam Hampton Roads Transportation Authority, VA Virginia