LINCOLN- A new and unique contractor-led build-financing model is fueling the accelerated delivery of the $352 million Lincoln South Beltway, which includes 43 miles of alignment, 21 bridges, five interchanges, and 11 roundabouts. The Beltway is expected to be completed by 2024 after just three years of construction, as opposed to the expected eight to ten.

To expedite the process, the Nebraska Department of Transportation utilized deferred contract payment certificates. The funds to pay for these certificates come from tax-exempt bonds via a conduit issuer, the Arizona Development Authority. NDOT then makes $7.5 million payments every quarter until the project is completed.

Typically, a large project like the South Beltway would have been broken up into several phases and built as funding became available. "For a state Department of Transportation with about $700 million or so a year to spend, a $350 million project was just too big a piece" without the unique finance model, said Chris Hawkins, CEO of Hawkins Construction Co., who is building the Beltway.

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