North America: Jefferson Parkway authority rejects unsolicited P3 proposal

27 August 2018 - 12:00 am UTC

The Jefferson Parkway Public Highway Authority (JPPHA) rejected an unsolicited proposal from Northwest Parkway LLC to build and operate the Jefferson Parkway.

JPPHA is scheduled to release an RFQ for the design-build-finance-operate-maintain (DBFOM) of the Jefferson Parkway, the 9.2 final link in the Denver Metropolitan Beltway, in the coming weeks, as Inframation reported.

On 13 August, Northwest Parkway LLC submitted an unsolicited proposal to develop and operate the Jefferson Parkway, and also to build and operate the Northwest Parkway Extension, in cooperation with the Northwest Parkway Public Highway Authority, according to Bill Ray, executive director of the JPPHA.

“After an evaluation of the proposal, the entire JPPHA has determined that it will not further consider the Northwest Parkway concessionaire unsolicited proposal, and intends to proceed with the competitive RFQ process, which has the potential to create the best overall value for the Jefferson Parkway project,” Ray said in a 16 August statement.

Northwest Parkway is a tolled highway that connects E-470 at Interstate 25 with US Highway 36 and State Highway 128 in Broomfield. DIF Infrastructure IV, HICL Infrastructure Co and Northleaf Infrastructure Capital Partners are Northwest Parkway LLC’s equity sponsors.

Northwest Parkway LLC did not return calls seeking comment.

JPPHA has retained Ashurst has transactional counsel for the project. Icenogle Seaver Pogue is JPPHA’s general counsel. Ernst & Young (financial), The Antero Company (P3 consultant) and CDM Smith (toll and revenue consultant) are also advising the authority on the project.    

Project details
Jefferson Parkway is planned as a four-lane, limited-access tolled highway, extending from the Colorado State Highway 93 on the south.

The JPPHA expects traffic and revenue risk to be assumed by the developer, according to JPPHA statement.      

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