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CALIFORNIA TRANSPORTATION VENTURES ANNOUNCES FINANCING IS COMPLETE FOR THE SR 125 SOUTH EXTENSION
SAN DIEGO, Calif. (May 22, 2003) - California Transportation Ventures (CTV) announced today that all financing is in place for the toll road portion of the SR 125 South. The financial close is the final step needed to officially begin construction this summer on the long-awaited project that will relieve traffic congestion and reduce travel time for commuters in the growing South Bay and Otay Mesa regions.
SR 125 South is a 9.3-mile technologically advanced toll road that will run from the SR 54 in Spring Valley to SR 905 near the International border. The expansion of SR 125 has been part of the state's planned freeway system since 1959 and part of the Regional Transportation Plan, which establishes the region's 20-year transportation plan based on population and employment projections, since 1984.
CTV has executed final financing documentation with Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), DEPFA BANK plc (DEPFA) and the U.S. Department of Transportation (USDOT), marking the successful financial close of the $639 million toll road project.
"This important stretch of Route 125 will complement the regional highway network to make travel more convenient for drivers," said Gary Gallegos, SANDAG Executive Director. "The highway is an important part of the SANDAG overall Regional Transportation Plan and reinforces South County as an employment powerhouse that is keeping our region and California economically competitive."
The City of Chula Vista has also contributed to the development of SR 125 South by facilitating a land dedication program required for the project right of way.
Chula Vista Mayor Steve Padilla said, "SR 125 is long overdue. This transportation corridor is vital to Chula Vista's future. For decades, it's been an important part of our transportation planning, and we're relieved that the challenges to this project are now behind us. We are pleased that a group with the experience and financial strength of Macquarie Infrastructure Group has recognized the importance of the project and the potential of the South Bay area. The City looks forward to working with SBX and Macquarie to deliver this project to the citizens of Chula Vista and San Diego," said Padilla.
The Otay Mesa Chamber of Commerce has been another long-time supporter of this project. "The SR 125 South will improve regional mobility in the South Bay and access for residents and businesses to the employment centers on both sides of the U.S./Mexico border," said Alejandra Mier y Teran, Executive Director of the Otay Mesa Chamber of Commerce. "SR 125 South will also be the first highway to connect the Otay Mesa Port of Entry, the most important commercial corridor in the California/Mexico border, to the rest of the State freeway network."
SR 125 South was one of the first five projects selected for credit assistance through TIFIA, which was authorized under the 1998 Transportation Equity Act for the 21st Century (TEA-21).
"SR 125 is a TIFIA success story, demonstrating how innovative federal financing tools can attract private investment to critical transportation projects," U.S. Transportation Secretary Norman Y. Mineta said in a USDOT release on the closing. "TIFIA provides an alternative way of doing business, allowing private partners to share with the government the risk and rewards of infrastructure investment, thereby creating jobs and contributing to economic growth."
About Macquarie Infrastructure Group
Macquarie Infrastructure Group (MIG) is an Australian listed fund, which invests in toll roads globally, with 26 toll road investments in eight countries. MIG acquired a majority interest in the concession to develop and operate the $639 million SR 125 South toll road from the original sponsors in September 2002, and has subsequently purchased the various minority interests, leading to 100 percent ownership.
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