Toll road operator Transurban Group (TCL.AU) said Thursday that Virginia has approved a US$565 million project to extend a toll road near Washington, D.C.
The project will extend existing reversible I-95 express lanes south by 10 miles to Fredericksburg, Va. Transurban says it expects construction to begin in early 2019 and for the new lanes to be open in late 2022.
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Transurban said the deal includes an additional payment of US$45 million to the Virginia Department of Transportation at financial close, which is scheduled for the first half of 2019. In addition, a US$232 million payment will be made when the road opens, in lieu of forecasted toll revenue sharing commitments under an existing concession agreement.
Chief Executive Scott Charlton signaled the company could invest more in the U.S. in the future.
"We continue to expand our operations in North America with additional opportunities emerging in the Greater Washington area, as well as targeting select metropolitan areas that fit with our strategic and financial criteria," he said.
-Write to Mike Cherney at email@example.com
(END) Dow Jones Newswires
January 10, 2018 17:54 ET (22:54 GMT)