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News » US » Fluor and Balfour Beatty finalize deal for $4.9bn LAX people-mover » published 12 Jun 2018

Fluor and Balfour Beatty finalize deal for $4.9bn LAX people-mover

An international team led by Balfour Beatty and Fluor has reached financial close on a scheme to build an automated people-mover at Los Angeles International Airport (LAX).

The Linxs team will design, build, finance, operate and maintain the new 2.25-mile airport connection. The project includes six stations, where driverless vehicles will arrive to transport passengers every two minutes during peak periods.

The equity members of Linxs are Balfour Beatty Investments (27%), Fluor Enterprises (27%), Hochtief PPP Solutions (18%), ACS Infrastructure Development (18%) and Bombardier Transportation (Holdings) USA (10%). Fluor is the managing partner of the design-build joint venture team, Linxs Constructors, comprising Fluor, Balfour Beatty, Dragados and Flatiron.

Client Los Angeles World Airports (LAWA) values the project at approximately US$4.9bn, including all design, construction, commissioning, operations and maintenance costs over the 30-year concession period. The contract was announced in February, when Balfour Beatty gave the contract value as US$1.95bn (link opens in new tab).

The financing includes approximately US$1.2bn in Private Activity Bonds, US$263m 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.

“We are delighted to reach this milestone in partnership with LAWA and look forward to building on the excellent relationship we have developed,” says Ian Rylatt, chief executive officer of Balfour Beatty Investments.

Design and construction is scheduled to begin later this year, with passenger service slated for 2023. It will employ 750 personnel at its peak.

Following construction, Linxs Operators, comprising Fluor, ACS Infrastructure Development, Bombardier and Hochtief, will provide approximately 25 years of operations and maintenance services.

 

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This article was published on 12 Jun 2018 (last updated on 12 Jun 2018).

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