The San Francisco County Transportation Authority announced on June 14 that financial close has been reached in the public-private partnership (P3) for the second phase of the Presidio Parkway project. With financing now in place, this will become the first P3 project in California under the new P3 statute passed by the California legislature in 2009.
Phase 1 of construction is wrapping up after the dramatic demolition of Doyle Drive in April. The first phase included construction of initial roadway elements and the transfer of traffic to a seismically safe bypass, making room for the second phase elements to be built. This phase was delivered through the traditional design-bid-build model typically used in California.
The private partner for Phase 2, Golden Link Concessionaire, LLC, consists of Hochtief, an international provider of construction-related services, and Meridiam Infrastructure, an investment firm specializing in public-private partnerships. Golden Link will provide investment capital and oversee the work. Construction and design are being performed by lead contractors Flatiron Construction and Kiewit, with engineering and design support provided by HNTB.
The private consortium will oversee the design, construction and financing of the entire project, including operations and maintenance of the roadway for 30 years. A single payment of $173 million will be made to the consortium upon completion of construction. Annual payments not to exceed $35 million will also be made that include repayment of the balance of capital investment.
“Achieving financial close on the Presidio Parkway public-private partnership is a hugely important milestone in our efforts to replace the aging Doyle Drive with a seismically safe and beautifully designed parkway,” said José Luis Moscovich, executive director of the San Francisco County Transportation Authority. “Beyond this one important project, success of California’s first public-private partnership goes a long way to ensuring that this efficient and economical form of project delivery remains available for other major infrastructure projects, including high-speed rail.”
The Presidio Parkway project has received extensive support from House Minority Leader Nancy Pelosi, who helped secure $46 million in funding from the American Recovery and Reinvestment Act of 2009.
“This innovative public-private partnership, along with a $147 million federal TIFIA loan, ensures the necessary financing to complete this road: uniting the Presidio’s Main Post to Crissy Field, creating jobs, reducing congestion, and ensuring safety for the tens of thousands of San Franciscans who use Doyle Drive every day,” stated Pelosi.
Major construction on the second phase of the Presidio Parkway project is scheduled to begin later this summer. This phase will include construction of all remaining elements of the Presidio Parkway, including the northbound high viaduct and battery tunnel, the Main Post tunnels, and the new Girard Road interchange into the Presidio. Phase 2 will also include final landscaping.