Project Profiles

Project Sponsor / Borrower

Florida Department of Transportation (FDOT)

Miami Access Tunnel (MAT)

Miami-Dade County

City of Miami

Fiscal Year Approved

Fiscal Year 2010

Description

The Port of Miami Tunnel will improve access to and from the Port of Miami, serving as a dedicated roadway connector linking the Port (located on an island in Biscayne Bay) with the MacArthur Causeway (State Road A1A - which connects Miami to Miami Beach) and I-395 on the mainland. Currently the Port is linked to the mainland only by the Port Bridge. Creating the tunnel alternative will: (i) improve access to the Port helping to keep it competitive and efficient, (ii) improve traffic safety in downtown Miami by removing cargo trucks and cruise line buses from congested city streets, and (iii) facilitate ongoing and future development plans in and around downtown Miami.

The project includes a tunnel under Government Cut, roadway work on Dodge and Watson Islands and MacArthur Causeway Bridge widening. Twin tubes, each 3,900 feet long and 41 feet in diameter, will reach a depth of 120 feet below the water.

The project is being developed as a public-private partnership with Miami Access Tunnel, LLC (MAT). The state has agreed to pay for approximately 50 percent of the capital costs (design and construction) and all operations and maintenance, while the remaining 50 percent of the capital costs will be provided by the local governments.

Under the concession agreement, FDOT will pay MAT milestone payments at various stages of project development. Payments of varying amounts summing to $100 million will be made during construction between 2010 and 2013, followed by $350 million final acceptance payment after construction is completed. In addition, the Department will provide availability payments to the concessionaire that begin at the completion of construction and will occur annually for 30 years. The Maximum Availability Payment is $32.479 million annually based on the availability of the road.

Funding Sources

Total Eligible Project Costs: $1,072.9 million

TIFIA capitalized interest during construction is not included in total eligible costs in the amount of $40.1 million

Private Partner

Miami Access Tunnel, LLC (MAT)

Lenders

USDOT TIFIA

10-bank club (senior bank debt):

TIFIA Credit Assistance

Direct loan: $341.5 million

The TIFIA loan holds a second priority security interest in project revenues after senior obligations. The project's senior debt obligations will be fully amortized prior to commencement of TIFIA payments, providing TIFIA with a sole claim on project cash flows available for debt service.

Innovations

Second U.S. application of availability payments to finance a transportation project (the first also being in Florida - the I-595 Corridor Roadway Improvements)

Contacts

Teresa Alvarez, P.E.
District Consultant Management Engineer
FDOT
Tel: (305) 470-5142
Teresita.Alvarez@dot.state.fl.us