Financial close for airport project
By Thomas Allen19 June 2018
Financial close has been reached on the Los Angeles International Airport (LAX) automated people mover project.
Valued at approximately US$4.9 billion by Los Angeles World Airports (LAWA), the scheme includes the design, construction, commissioning, operation and maintenance of the system over a 30-year period.
The LAX Integrated Express Solutions (LINXS) joint venture responsible for the project comprises Balfour Beatty, Fluor, ACS Infrastructure Development, Hochtief PPP Solutions and Bombardier Transportation at the equity level, and Balfour Beatty, Fluor, Dragados USA and Flatiron at the design-build joint venture level.
Part of LAWA’s wider Landside Access Modernisation Programme, the automated people mover will consist of a 3.6km, above-ground rail system connecting LAX passengers with the airline terminals, a new centralised car rental facility, new pickup and drop-off locations with parking facilities, and Metro’s regional transit system. It will have six stations, an on-site maintenance facility and capacity to operate up to nine trains simultaneously.
The financing structure includes approximately US$1.3 billion in private activity bonds, US$270 million in bank debt and private partner equity. The contract contains milestone payments for design and construction progress, and availability payments for both operations & maintenance and debt service.
Construction is scheduled to begin in the summer of 2018, it will employ an estimated 750 construction workers at its peak, and completion is expected in 2023.