2 minute read | December.27.2022
Orrick advised Bridging Pennsylvania Developer I, a consortium comprised of Macquarie Capital and Shikun & Binui USA, as borrowers counsel for the first phase of the PennDOT Pathways Major Bridge Public Private Partnership (“P3”) project that will replace six bridges in critical need of repair across the Commonwealth—I-81 Susquehanna, I-80 Nescopeck Creek, I-78 Lenhartsville, I-80 Lehigh River, I-80 Canoe Creek and I-80 North Fork—out of the nine bridges included in the program. The Major Bridge P3 initiative was designed to address the state’s growing backlog of major bridge replacement and rehabilitation needs.
The first phase of the project will consist of the design, build, financing and maintenance of the six bridges and related roadway and supporting infrastructure delivered under an availability-based P3 structure that will conclude between September 2027 and June 2028. The financing includes approximately $202 million in equity and approximately $1.8 billion in private activity bonds. The project will support Pennsylvania’s interstate transportation system and local job market, with the vast majority of the work being delivered by local Pennsylvania suppliers and contractors. By taking a P3 approach, it will enable the stakeholders to accelerate the repair and construction of the six bridge projects more efficiently than any other alternative procurement process.
The project is the first transportation-related P3 to close utilizing a pre-development agreement (PDA) structure. The PDA enabled the team to work collaboratively with PennDOT to identify the key risks, work on permits, and led to significant progress on the project's design, providing certainty around schedule and costs.
The project was led by Young Lee and included Matthew Neuringer, Susan Long, Ian Busche, Jesse Brown, Richard Chirls, Chas Cardall, Eileen Heitzler, Sue Cowell, Helen Pennock, Marlowe Mitchell, Joe Lawlor, Eric Newman, Thomas Kidera and John Ansboro.