Download One-on-One Meetings

One-on-One Meetings
I-64 Hampton Roads Bridge-Tunnel Expansion
SUMMARY OF ONE-ON-ONE MEETINGS
I-64 HAMPTON ROADS BRIDGE-TUNNEL EXPANSION PROJECT
APRIL 2017
In the Request for Information, potential proposers were invited to one-on-one meetings to help
refine VDOT’s and HRTAC’s assumptions related to Project procurement and delivery. Below are
key observations from these meetings.

Firms noted the HRBT project differs from I-66 in that (1) willingness to pay in Hampton Roads
is much lower than in Northern Virginia and (2) HRBT project geometry restricts opportunities
for increasing revenue through new access options.

The majority of firms indicated that a DBFOM model with revenue risk may not be the best
delivery model for this project. Due to low revenue projections, it will be unlikely that more
than 20% of project cost can be financed through a revenue risk DBFOM model.

Equity investors’ perspectives varied on willingness to assume DBFOM traffic risk:
o
Some firms expressed willingness to participate in DBFOM delivery only if the project
could be structured without revenue risk, e.g. with availability payments.
o
Some firms expressed willingness to participate in a revenue-risk DBFOM if the project
could be structured with a large public subsidy.
o
One firm expressed willingness to participate in DBFOM delivery if the project could be
structured with a predevelopment agreement, shadow tolls, or tolling all lanes in one
direction.

One firm had considered potential inclusion of other HOT network segments in this project.

Firms felt that innovation via ATCs can be achieved under both DB and DBFOM models.

Firms generally expressed preference for DB over DBOM, with concerns about unknown O&M
risk of existing tunnels and difficulty of structuring DBOM if equity is not involved.

Firms recommended that VDOT conduct environmental studies, geotechnical investigations,
and preliminary permitting to minimize additional contingencies related to uncertainty during
proposal development.

Firms favored selection of procurement model prior to initiation of procurement process.

Firms supported VDOT’s approach to keep tunnel-construction methodology flexible.

Firms requested clarity on number of tunnel lanes desired by VDOT.