PennDOT Major Bridge P3 Program
Throughout PA
| Location: | Six interstate highway locations throughout Pennsylvania |
| Owner: | PennDOT |
| Concessionaire: | Bridging Pennsylvania Developers 1 (BPD1), of which S&B USA Concessions is a member |
| Construction Company: | Bridging Pennsylvania Constructors (BPC), a joint venture that includes S&B USA Construction |
| Project Status: | Financially closed on Dec. 22, 2022. Construction began in September 2023 and completion is expected by summer 2028 |
The PennDOT Major Bridge Public-Private Partnership (P3) Project (MBP3) was designed to secure sustainable funding for Pennsylvania’s transportation system, and with a financial close of $2.3 billion, it represents the largest bundled-bridge project ever delivered in the US under a P3 agreement. The program focuses on the design, construction, financing, routine and life-cycle maintenance of a total of 23 structures and 21.27 miles of roadway and associated infrastructure improvements across six critical interstate highway locations in Pennsylvania.
Project Highlights
- First transportation-related P3 to close utilizing a pre-development agreement (PDA) structure
- Design and construct 23 structures, 21.27 miles of roadway and associated infrastructure
- Provide 35 years of routine and major maintenance of the assets
- Construction in progress at all six locations
- Nearly 90% of the project’s work has been subcontracted to local Pennsylvania firms
- Largest issuance of surface transportation Private Activity Bonds (PABs) in the U.S. municipal market
- Recipient of six awards from the P3 industry
The Largest Bundled-Bridge Project Delivered in the US Under a P3 Agreement
The PennDOT Major Bridge Project, with a single $1.5 billion construction contract, is an ambitious P3 addressing essential bridges in Pennsylvania’s intra and interstate transportation system in need of replacement and contemporary safety designs. Delivered through a Progressive Design-Build-Finance-Maintain method, this project will rehabilitate, reconstruct and replace interstate bridges at six locations across the Commonwealth of Pennsylvania to ensure the long-term resiliency and dependability of the state’s transportation infrastructure.In addition to replacing this aging infrastructure, the MBP3 project also advances two additional goals:
- PennDOT’s goal of strengthening Pennsylvania transportation’s resilience by incorporating flood, rock and mudslide mitigation into the designs; and,
- Driver safety and design enhancements through improved connectivity, mobility, loading, geometry and drainage.
S&B USA has been and is an integral component of the Bridging Pennsylvania Partners team. From the start of the procurement through the identification of BPP as our Pre Development Agreement partner, S&B USA was always very helpful and considerate of the position of PennDOT regarding the replacement of interstate bridges. Once we executed the PDA and entered that phase, that level of cooperation only increased to the point where we were able to successfully reach commercial and financial close in an accelerated timeframe that is a result of all partners successfully working together. We are looking forward to S&B’s continued partnership in the successful delivery of our Major Bridge P3.
-Michael Bonini, Director of PennDOT's Public-Private Partnership (P3) Office
Financing
This P3 utilized a pre-development agreement (PDA) structure, a collaborative approach that enabled the team to work collaboratively with PennDOT to identify key risks and work on permits, and led to significant progress on the project’s design, providing certainty around schedule and costs.S&B USA Concessions was chosen as one of the project developers based on a number of factors—such as experience, qualifications and their approach to the work. Additionally, the use of a PDA helps to eliminate issues such as delays and unforeseen construction issues.
To finance a project of this magnitude, PennDOT chose a P3 approach, which allowed PennDOT to accelerate the repair and construction of these six bridges in critical need of replacement despite dwindling resources in the face of growing needs. Much of the funding for this project will come from Private Activity Bonds (PABs). The MBP3 project marked the largest issuance of surface transportation PABs in the US municipal market to date, and it priced above par! Additionally, the project is financed with equity contributions structured through mobilization and milestone payments, as well as fixed interest earnings. S&B USA owns a 40% share.
This project has received six P3 industry awards, including;
- Proximo – 2022 North America Roads Deal of the Year
- IJ Global – 2022 Deal of the Year: Transport – Road – North America
- Bond Buyer – 2023 Northeast Region Deal of the Year
- The Banker – 2023 Infrastructure and Project Finance Deal of the Year
- P3 Awards – 2024 P3 Award for Best Road, Bridge, or Tunnel Project
- American Road and Transportation Builders Association (ARTBA) – 2024 Innovation of the Year
Construction
S&B USA Construction, along with a JV partner, is leading the construction management of all six bridge locations.The package will focus on six critical interstate bridge locations across the state: I-80 Canoe Creek, I-80 North Fork, I-78 Lenhartsville, I-80 Nescopeck Creek, I-80 over the Lehigh River, and I-81 Susquehanna. Construction began in July 2023, with completion anticipated by summer 2028.
Fay, S&B USA Construction—a member of the S&B USA family—is adding this to the decade-long list of successfully delivered PennDOT projects by acting as one of the local construction subcontractors at the I-80 North Fork and I-81 Susquehanna locations of this project.
Additionally, this project will have a direct positive impact on the state’s residents, businesses and local economies due to subcontracting nearly 90% of the work to local Pennsylvania firms, far exceeding the 65% contractual requirement.
