Goethals Bridge Replacement
Elizabeth, New Jersey
The Goethals Bridge Replacement project features a new $1.2 billion toll bridge connecting Staten Island to New Jersey. The 13.5 lane-mile project will improve safety, alleviate congestion for the 80,000 average daily vehicles, and better accommodate future traffic growth. The project involves construction over 4.3 years of a new six-lane cable stayed main span bridge, new approach structures and realignments to link to the existing road network, demolition and removal of the existing bridge, and a 35-year operating period. KDC was a co-developer and 10% equity member on the project, joined by another Kiewit affiliate as the lead general contractor, and other team members and a group of third-party advisors including legal, financial, technical, and tax. KDC participated in all key commercial negotiations and worked closely with the financial advisor to conduct a detailed due diligence process with rating agencies, TIFIA, Assured Guaranty (insured some of the PABs maturities), and the underwriters in order to achieve the right balance between risk mitigation, debt repayment profile, and cost effectiveness. Private capital raised for the project was in excess of $1 billion, including over $900 million of project debt. KDC collaborated with the project team to eliminate short term financing needs due to the timing of milestone payments by optimizing the construction schedule and the general contractor JV payment curve. The project team’s efforts resulted in a financing solution with only long-term financing elements, reducing the project’s overall cost of capital. This reduction resulted in lower performance payments.