Further PPP investment in the US and increased investment levels for 2017
John Laing Group plc, the international originator, active investor and manager of infrastructure projects, is pleased to announce today a further investment in the US.
John Laing is investing $155 million (£118 million) in the Transform 66 P3 Project (Outside the Beltway) in Northern Virginia, US, together with Cintra, Meridiam and APG. The project involves the development of 22.5 miles of managed lanes along the I-66 corridor between the I-495 (Capital Beltway) in Fairfax County, Virginia and West of University Boulevard in Prince William County, Virginia. The project will enhance one of the key commuter routes within the Washington DC metropolitan area over a total concession period of 50 years. Cintra is part of the Ferrovial group, whose construction arm, Ferrovial Agroman, will be the main contractor.
Managed lanes projects combine toll lanes and free lanes within an existing highway corridor and typically provide users with the option of a reliable travel time, including during peak hours. This is achieved through varying tolls dynamically in response to changing traffic conditions, thereby enabling motorists to assess immediately the travel time value of moving to the managed lanes or staying in the free lanes. Unlike traditional toll roads, managed lanes are designed primarily to reduce congestion. Having been used in the US for several years, their implementation is increasing in response to growing congestion in dense urban corridors.
On 29 September 2017, John Laing announced that its investment commitments for 2017 to date were £222 million. Taking into account the I-66 investment, commitments will increase to £340 million, well ahead of the original guidance of approximately £200 million for the full year.
Looking ahead to the remainder of 2017, as previously announced John Laing's consortium was appointed preferred bidder in July 2017 for the Melbourne Metro PPP project. Assuming this project reaches financial close in late 2017 as currently anticipated, the Group's investment commitments for 2017 will increase again. A further update will be given nearer the time.
Olivier Brousse, John Laing's Chief Executive Officer, said:
"Following the I-77 in 2015, this is our second investment in managed lanes in the US. We see managed lanes as attractive and sophisticated projects which enable us to deploy our investment expertise. Because they provide an effective solution to address urban congestion, we see them as a growing asset class in the future. We are delighted to be teaming up with Cintra and Meridiam who have a great track record in this sector. Looking ahead, we continue to have a strong pipeline of attractive investment opportunities, particularly in North America and Australia."
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