Zachry/Odebrecht get $1.1 billion design-build-maintain-operate contract for 38mi of Grand Parkway north of Houston TX

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2012-09-27: Houston TX, America's fastest growing metro area will get another 38 miles of pike on its third beltway with the selection of a contractor to do design, build, operations and capital maintenance. The Texas Transportation Commission today approved TxDOT's selection of Zachry-Odebrecht Parkway Builders (ZOPB) ahead of three other shortlisted groups who proposed.

Equity holders are Zachry, a major San Antonio TX based American builder and Odebrecht, an international builder head officed in Sao Paulo Brazil. Associated companies in this project are shown in a panel below.

The project is an initial 2x2 lane toll expressway with discontinuous frontage roads - segments F1, F2 and G of the Grand Parkway state route 99 (TX99).

The project being built by ZOPB comprises a mostly east-west portion north and northwest of central Houston.

It begins at its eastern end at the US59 freeway in Montgomery County about 22 miles out from downtown Houston and runs 13.5 miles west to I-45. This stretch (Segment G) is just a few miles north of the edge of the area's major George Bush International Airport.

Most of Segment G is in Montgomery County but it crosses west into Harris County near I-45, and segments F1 and F2 are located in that most populous Houston area county.

Segment F2 is another 12.2 miles across to TX249, and segment F1 is another stretch that hooks south to US290, and plugs into segment E

(under construction in an earlier contract) heading south. Longest structure is an 8,000ft long bridge over Willow Flats wetlands in the F1 segment.

Texas DOT which will raise the capital and take the traffic and revenue risk is now finalizing a design-build contract with ZOPB for $1,005 million and an operations and maintenance contract that is $12m for 5 years or $58m for 15 years.

Eight of a potential 12 director connector ramps at three expressway-expressway are being built now.

The contract also includes options to add $29m of missing direct connector ramps at three interchanges later, and $7m

of local street overpasses to serve local development.

ZOPB scored 92.2 in the TxDOT procurement ahead of:

2. Fluor/Balfour Beatty/Willians 72.1,

3. Abrams/FCC/Lane/Shikun & Binui 70.1 and

4.Kiewit/Granite 63.0.

Full concession dropped

Last year in the early stages the procurement requested proposals for a full toll concession in which the investor groups would take the traffic and revenue risk in parallel with design-build-operate-maintain contracted with TxDOT taking the traffic and revenue risk. The full concession model was dropped with TxDOT finding it advantageous to do the more limited development aggreement.

Construction is due to begin next year for opening in 2016.

Often referred to as the Katy Prairie country this is an area of strong new residential development.

Category: Construction

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