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Thu September 16 2021

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Aecom and John Laing team named for $1.4bn Michigan highway

12 Sep 18 The US state of Michigan has named Oakland Corridor Partners - headed by investors Aecom and John Laing - as the preferred team to rebuild and maintain the final segment of the I-75 modernisation.

Aecom and John Laing are the principal equity partners in the team. The construction partners are Dan’s Excavating, Ajax Paving Industries, Jay Dee Constructors and CA Hull. Aecom Great Lakes is lead designer.

The final cost of the segment, which is subject to adjustment prior to financial close, is currently estimated at US$1.4bn.

The work for the Michigan Department of Transportation (MDOT) consists of the rebuilding more than five miles of pavement, modernizing the freeway and improving 28 bridges between M-102 (Eight Mile Road) and 13 Mile Road in the communities of Hazel Park, Madison Heights, and Royal Oak. Also included is a safety upgrade that separates traffic entering northbound I-75 from I-696 and northbound I-75 traffic exiting at 11 Mile Road. In addition, MDOT is constructing a 14-foot-diameter drainage tunnel to mitigate future flooding concerns.

The project is being carried out under the design-build-finance-maintain (DBFM) contracting model. "The staff overseeing the creation of this unique contracting method worked tirelessly analyzing different options to determine that the DBFM model would provide the best project for Michigan in terms of innovation and delivery while meeting the project goals and objectives," said state transportation director Kirk Steudle. "In agreements that transfer maintenance responsibilities to a private party, the public owner benefits from guaranteed performance standards and long-term pricing that is locked in throughout the agreement."

Financial close is expected to take place by the end of the calendar year.  

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