DriveTN to Pay Tennessee $148 Billion for I-24 Toll Lane Project

DriveTN, a six-company consortium led by Spain-based Ferrovial, has promised to pay the state of Tennessee nearly $148 billion over the next 50 years to secure a contract for toll lanes along the I-24 southeast corridor. The Tennessee Department of Transportation and DriveTN announced the agreement Tuesday, a figure that is six times higher than the nearly $25 billion initially guaranteed in August when the state approved the bid.

The project involves a $9.2 billion construction effort to build toll lanes along I-440 and I-40 East in Nashville, as well as roughly 30 miles from downtown Nashville to Murfreesboro. DriveTN intends to recoup its expenses by charging motorists to use the lanes in these congested highway sectors over the next half-century.

New Payment Structure

Under the revised financial terms, Tennessee is expected to receive $7.7 billion in payments starting from a financial closing date scheduled for the third quarter of 2027 through the completion of construction in 2035. This will be followed by payments exceeding $140 billion during the 50-year operating period, according to a Department of Transportation release.

NEW: A group that competed for the I-24 Southeast Choice Lanes project is asking a judge to make the Tennessee Department of Transportation release records explaining how DriveTN won the deal and what the final agreement says: https://t.co/Gd7SMavURW

— https://x.com/newschannelnine/status/2107644592598221157

The project was originally awarded by the state’s Transportation Modernization Board based primarily on DriveTN’s initial promise to provide $24.8 billion in payments to the state during the eight-year construction phase.

Choice Lanes Partners Challenges DriveTN Payment Structure

The announcement of the new payment structure follows a court challenge filed in Davidson County Chancery Court by 24 Choice Lanes Partners, a group that lost the bid. In its filing, the group alleges that the Department of Transportation gave DriveTN an unfair advantage by allowing it to alter the terms of its payout after the bidding process had concluded.

Tennessee toll lane operator promises to pay state nearly billion — Photo: tennesseeconservativenews.com

The filing further claims that DriveTN was able to make these adjustments because it had access to the proposals of three other consortiums, including two that had offered approximately $7 billion in concessions to secure the deal.

Following the initial bid, UBS, a Switzerland-based bank, downgraded Ferrovial’s stock from “buy” to “neutral.” The bank cited “higher risks” linked to the original guarantee of nearly $25 billion in payments over the construction timeline, a figure that dwarfed the efforts of other competitors.

A spokesperson for the Department of Transportation did not answer questions by a Wednesday deadline.