SR 400 Express Lanes

The SR 400 Express Lanes project is a transformative element of Georgia’s expanding express lanes network, designed to enhance regional mobility, reduce congestion, and provide reliable travel options for motorists and transit riders. Spanning approximately 16 miles, the project extends from the North Springs MARTA Station at Exit 5C in Fulton County to 0.9 miles north of the SR 400/McFarland Parkway Interchange at Exit 12 in Forsyth County. The project will introduce two express lanes in each direction between the North Springs MARTA Station and McGinnis Ferry Road, and one express lane in each direction from McGinnis Ferry Road to McFarland Parkway. Aligned with GDOT’s strategic goals, the project seeks to: • Improve travel reliability and corridor mobility through consistent travel times. • Support transit by accommodating future bus rapid transit stations and connections. • Enhance regional connectivity, particularly at the SR 400/I-285 interchange and future I-285 Top End East and connect the future planned express lanes on I-285. • Prioritize safety and security throughout construction and operations. • Reduce public inconvenience by proactive traffic management. • Use innovative construction and tolling methods for quality, efficiency, and sustainability. • Ensure long-term value through effective maintenance, risk management, and life-cycle cost controls. • Leverage private funding and toll revenues to reduce dependence on public funds. • Implement proven, interoperable tolling systems with multiple payment options. • Promote economic development and workforce opportunities. • Encourage disadvantaged business enterprise (DBE) participation. • Protect environmental resources and mitigate impacts where feasible. The project represents a forward-looking investment in Georgia’s infrastructure, delivering long-term benefits in mobility, safety, economic growth, and environmental stewardship. Innovation in Procurement, Structure, Finance, and/or Delivery SR 400 is an outstanding example of flexibility, evolution, and innovation in both the procurement process and delivery. Initially structured under an availability payment model, the project underwent a pivotal transformation during the procurement process. As it became clear that this model would not deliver optimal value for Georgia taxpayers, GDOT demonstrated exceptional leadership by transitioning to a revenue-risk model. This shift included a comprehensive reassessment of the project’s risk profile, resulting in a framework that significantly improved upon recent P3 precedents nationwide. GDOT's approach exemplified a strong balance between openness to innovation and a firm commitment to securing the best value for the state of Georgia. Proposers embraced this innovative environment, submitting a substantial number of Alternative Technical Concepts (ATCs) during the procurement—ultimately including 23 in the winning proposal. Notably, several ATCs enhanced mobility solutions at critical points along the corridor, improving access to the managed lanes. The culmination of GDOT’s forward-thinking procurement strategy and the creativity of proposers resulted in an unprecedented outcome: a $4 billion concession fee—a milestone for a managed lanes project —that then flows back into GDOT’s program for future roadway and transit enhancements throughout the corridor, as well as the $4.5 billion in design and construction costs—entirely funded by the concessionaire. Critical to the creative financing strategy are the inclusion of Private Activity Bonds and a TIFIA loan that facilitated this extraordinary result. Effective Risk Assessment and Transfer From the outset, GDOT treated strategic risk allocation as critical to the project's success. In adapting to the new revenue-risk structure, the State redesigned its commercial framework and promoted open dialogue with shortlisted teams. GDOT also implemented a landmark approach to technical provisions risk, ultimately strengthening the financial and project outcomes for Georgia taxpayers. Through early and proactive engagement, GDOT issued preliminary commercial guidance on risk allocation as part of the RFQ process which was continuously refined through successive drafts of the Project Agreement, informed by interactive, one-on-one meetings. The final agreement reflects a tailored risk allocation strategy—retaining, sharing, or transferring each risk according to who can most efficiently price, control, or mitigate it. Several examples illustrate the rigor of this approach: - Differing Site Conditions: Recognizing the geotechnical complexity of an existing corridor, GDOT committed to compensating the Developer if subsurface conditions materially differ from the established baseline, reducing excessive contingencies and leading to tighter pricing. - Utilities Interface: Schedule relief and compensation are provided if utility owners fail to cooperate or if unidentified services are discovered, while holding the Developer accountable for proactive coordination. This balance preserves delivery incentives while preventing the need for bidders to price in uncontrollable delays—ultimately delivering better value to the public. - Materials Price Escalation: A shared-risk escalation clause limits exposure to volatility in key construction material prices. This mechanism reassures lenders, discourages inflated pricing due to uncertainty, and protects GDOT from market shocks. - NEPA Approval: GDOT established a tailored risk-sharing mechanism for NEPA re-evaluations tied to GDOT-concurred ATCs, providing partial compensation if delays or changes occurred due to FHWA actions beyond the Developer’s control. This gave proposers confidence to innovate while offering measured protection for the Developer and keeping environmental approvals under GDOT. - Early Works Provision: To maintain momentum, the agreement authorizes limited early works, mobilization, and critical path activities following Commercial Close. These activities are funded by GDOT through phased, capped payments before Financial Close. Commercial Close was achieved in November 2024, followed quickly by NTP 1 and NTP 2—both ahead of schedule. By addressing high-impact risks and embedding fair, incentive-aligned remedies—rather than punitive transfers—SR 400 demonstrates how thoughtful, targeted, risk assessment can unlock record-setting, private investment while safeguarding long-term public value. Meeting or Exceeding Project Milestones, Including Financial Close Each stage of the procurement process was managed efficiently, reflecting the strong collaboration between GDOT and the pursuing teams, as well as their shared commitment to timely delivery. Following a comprehensive bidding process, two competitive proposals were submitted. After rigorous evaluation, GDOT and SRTA selected SR 400 Peach Partners as the Best Value Proposer to design, build, finance, operate, and maintain the express lanes under a 50-year concession following construction. This milestone was achieved on schedule, underscoring GDOT’s effective project management and organizational capabilities. As a result of a collaborative framework, Commercial Close was successfully achieved on November 13, 2024—on time and as planned. Additionally, NTPs 1 and 2 were issued ahead of schedule, demonstrating the team’s focused commitment to early execution. The project remains on track to achieve Financial Close within 365 days of the project award announcement, which is anticipated for August 2025, reflecting the strength of the partnership between GDOT and SR 400 Peach Partners. Design Quality, Sustainability, and the Promotion of Environmental Measures SR 400 Peach Partners is committed to delivering a high-quality, environmentally responsible design. During the design phase, formal life-cycle reviews will be conducted in collaboration with construction and maintenance teams. These reviews ensure the final design remains durable, sustainable, and responsive to the project’s long-term operational needs. Quality assurance teams will verify that feedback from these sessions is documented and integrated into the design. Environmental stewardship is a priority throughout all phases. The project aims to minimize its ecological footprint by reducing vehicle idling, lowering emissions, and promoting multimodal transportation. Seamless integration with the MARTA system encourages public transit use and reduces dependence on single-occupancy vehicles. To ensure strong environmental compliance, SR 400 Peach Partners conducts preconstruction briefings and coordination meetings involving environmental and construction personnel. These sessions foster a shared understanding of environmental requirements and help prevent unintended impacts during construction. The design also incorporates long-term sustainability goals. By alleviating congestion and smoothing traffic flow, the express lanes are expected to significantly reduce emissions. Moreover, state-of-the-art intelligent mobility systems provided by Indra will enable real-time traffic monitoring, predictive modeling, and proactive infrastructure management—enhancing safety, efficiency, and sustainability. Together, these efforts underscore a deep commitment to smart growth, environmental protection, and high-quality, community-responsive design. Demonstration of the Project’s Social Impact and the Transformative Effect it Will Have on the Local Community and/or Users The project promises significant social benefits for users and communities. By easing congestion and reducing travel times, the express lanes will enhance daily life—offering greater predictability, reduced stress, and more time for work, family, and personal activities. Improved travel reliability also increases access to employment opportunities, connecting residents in suburban and outlying areas with the broader regional economy. Emergency response services will benefit from faster, more predictable travel times. During construction, SR 400 Peach Partners is committed to workforce development in Atlanta, with a strong emphasis on recruiting and training minorities, women, veterans, and supporting small businesses. In collaboration with its Lead Construction Contractor—a joint venture between Acciona Construction and FlatironDragados—the team partners with local employment organizations, community colleges, trade schools, and WorkSource offices. Engagement with nonprofit organizations like MAAC and Goodwill Industries further expands training and job placement opportunities. In summary, the SR 400 Express Lanes project will not only improve transportation infrastructure but also deliver lasting social impacts—supporting greater access, economic opportunity, and quality of life for a wide array of users.