I‐285 East P3 Preferred Bidder Selected, with Another Massive Concession Fee

The second massive express lane P3 in Georgia’s Major Mobility program now has a preferred bidder. In October, the Georgia Department of Transportation (GDOT) announced that it had selected Top End Mobility Group (TEMG) as the apparent best value proposer for the I-285 East express lanes project, and the winning proposal includes another massive concession fee. GDOT’s announced concession fee is $23.6 billion in funding to the state. TEMG will also reimburse the state the $515 million it has spent planning and procuring the I-285 East project to date, for a total $24.115 billion in payments.

Not all information on TEMG’s final proposal and the procurement are public, yet. GDOT has yet to publish the concession fees on offer from the other bid teams for the procurement, but has indicated that it will do so once the project reaches commercial close, which is planned for December 2026. GDOT did clarify that the concession fee would all be paid via six annual payments during the project’s construction period. TEMG’s proposal included a construction cost of $8.9 billion, over and above the concession fees. GDOT also reported that the concession fee may fluctuate at financial close depending on interest rates and final financial structuring.

GDOT evaluated the proposal teams via a combined financial (60%) and technical (40%) score. TEMG received a total score of 1944 out of 2500 points, though the detailed breakdown of scores across financial and technical criteria is not yet public.

The winning TEMG team is led by Cintra and Tikehau Star Infra. The team’s phase 1 lead contractor is a joint venture between Ferrovial and Webber. AECOM is the lead design firm.

“We look forward to working with TEMG on this significant undertaking to improve mobility along I-285,” said Russell R. McMurry, P.E., Georgia DOT Commissioner. “We are equally excited about the coordination we have had with communities, cities, counties, and Community Improvement Districts over the years.”

GDOT originally shortlisted four bid teams for the I-285 East express lanes project, and received three complete proposals. The other final bid teams for the project were East Perimeter Partners, led by Plenary, Sacyr, and Shikun & Binui, and I-285 East Peach Partners, led by ACS Infrastructure, Meridiam, and Acciona.

The I-285 East express lane project is intended to eventually develop two barrier-separated express lanes in each direction along the northeast quarter of the Atlanta perimeter. However, the phasing of the project is quite unique in part due to the current status of project preparation. Phase 1, which is the only project scope with hard bid pricing in the I-285 East procurement, will only develop the westbound express lanes and only between Northside Drive and Henderson Road, including interconnection with the SR-400 express lanes, which are currently under development.

A Phase 2 will mirror the express lanes along the same stretch on the east side of the corridor. This component of the project is under a Comprehensive Development Agreement (CDA) but is partially priced, with room for adjustments once it is ready for commercial close. A final Phase 3 of the project, which is to be negotiated, would extend the express lane network from Henderson Road down to the I-20 intersection.

The sequenced phasing will allow for additional design work to be completed for Phase 2 prior to finalizing commercial terms, so the phase is only partially priced. Phase 3 is to be negotiated, and is also outside the project’s current environmental study under the National Environmental Policy Act (NEPA). A separate study to permit the Phase 3 work under NEPA is underway by GDOT.

The I-285 East express lanes project is one of many in GDOT’s Major Mobility Investment Program (MMIP) to improve transportation statewide, and especially in the Atlanta region. Two other massive express lane P3s – SR-400 and I-285 West – are also part of the initiative, but MMIP also includes a number of other major transportation improvement projects.

“This project continues the department’s vision for a connected transportation network across metro Atlanta supported by an integrated express lanes system,” said Tim Matthews, P.E., Georgia DOT P3 Division Director. “With metro Atlanta among the fastest-growing regions in the nation, finding a long-term approach to increasing congestion is a top priority.”

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