Fluor announces financial close on LAX Automated People Mover
Fluor Corporation has announced that its joint venture LAX Integrated Express Solutions team reached financial close to design, build, finance, operate and maintain the 2.25-mile Los Angeles International Airport Automated People Mover project for the Los Angeles World Airports.
Fluor plans to book its share of the design and construction contract value in the second quarter of 2018.
The LINXS team is comprised of Fluor, ACS Infrastructure Development, Balfour Beatty, Bombardier Transportation, Dragados USA, Flatiron and Hochtief PPP Solutions. Fluor is participating in the entire 30-year life cycle of the project, which will be delivered under a $4.9 billion design-build-finance-operate-maintain contract.
The financing includes approximately $1.2 billion in Private Activity Bonds, $263 million in bank debt, and equity from Fluor and its partners. The contract includes milestone payments for design and construction progress, availability payments for capital repayment, and availability payments for operating and maintaining the automated people mover.
“Fluor is pleased to have reached financial close more than a month in advance of the deadline and is looking forward to providing this innovative solution for LAWA by extending LAX’s world-class facilities, reducing congestion and providing travel options with time-certainty,” said Terence Easton, president of Fluor’s infrastructure business. “Reaching this milestone in partnership with LAWA will maximise our proven experience from past P3 transit projects to successfully design, build, finance, operate and maintain this megaproject.”
Fluor is the managing partner of the design-build joint venture team, LINXS Constructors, comprised of Fluor, Balfour Beatty, Dragados and Flatiron.
Design and construction are scheduled to begin later this year, with passenger service slated for 2023. The project includes six stations along a 2.25-mile guideway where driverless vehicles will arrive to transport passengers every two minutes during peak periods. This new line will offer ridership capacity of up to 10,000 passengers per hour. LAWA anticipates that it will carry 85 million passengers per year providing a modern, reliable solution to help ease traffic congestion.
Following construction, LINXS Operators, comprising Fluor, ACS Infrastructure Development, Bombardier and Hochtief, will provide approximately 25 years of operations and maintenance services.