Capital Beltway – Virginia, USA
The Capital Beltway High Occupancy Toll Lanes in Virginia is a unique project that involved the design, construction, financing and operation of new managed lanes and interchanges on the existing I-495 in Virginia near Washington DC.
While with DEPFA Bank, Victoria Taylor was a member of the developer’s financial advisory team that closed the $1.9 billion financing for the project in June 2008, the first project in the US to utilize transportation PABs and the first to use bank letters of credit to credit enhance and provide liquidity support for a project financing.
Capital Beltway project included a large number of small/medium structures (bridges, underpasses, slip roads, ongoing traffic management, and technology development and user education during the construction period) which, taken as a whole, represented a significant technical challenge and a risk to sponsors and lenders. A key component of the financial advisor’s role was to facilitate an understanding of these risks by lenders, rating agencies and other financial institutions. This was achieved by ensuring that the financial analysis was consistent with the traffic projections, construction, and engineering program and by translating agreed risk tolerances into the sensitivity analysis of the financial model.