Private Sector Submits Proposals in Development of TTC-69

Two proposals to develop the Trans-Texas Corridor-69 have been
submitted to TxDOT, and the Texas Transportation Commission could
select a strategic partner by late 2007.

Teams Submit Proposals to TxDOT

Companies with Texas, U.S. and international experience are competing to develop the Trans-Texas Corridor-69 - one of the state's priority transportation projects.

Two private sector groups submitted proposals and qualifications to compete for the development of TTC-69, a multi-use transportation system stretching from Northeast Texas to Mexico.

"Inviting the private sector to invest in our transportation system is one of our strategies to meet the growing transportation needs of Texas," said Michael W. Behrens, TxDOT executive director.

One proposal was submitted by Bluebonnet Infrastructure Investors, led by Madrid, Spain-based Cintra. Team members include Citigroup, Earth Tech, Blanton & Associates, Maunsell, Othon and W.W. Webber.

A proposal was also submitted by Texas-based Zachry American Infrastructure and ACS Infrastructure Development Inc. Team members include Steer Davies Gleave, UBS Securities, Dannenbaum Engineering, ACI Consulting, Sociedad Ibercia de Construcciones Electricas, Dragados and William Brothers Construction Co.

The proposals include statements detailing the groups' experience in developing and financing transportation projects similar to TTC-69. Also included are conceptual proposals describing how the team would finance, design, construct, operate and maintain TTC-69.

After TxDOT's initial review of the proposals, teams with experience, qualifications and innovative engineering will be placed on a short list of potential strategic partners.

If the Texas Transportation Commission approves, TxDOT will then request detailed proposals from the short list. A selection of a strategic partner could be made by the commission by late 2007.

With no funding set aside for construction, a public-private partnership would allow development of the entire 600-mi., multi-billion dollar project from Northeast Texas to Mexico to be accelerated. Even with funding from private sector resources, TxDOT officials stress TTC-69 will remain a state-owned project.

Meanwhile, work continues on the initial environmental study that would narrow the current study area to approximately four-mi. wide.

Developed under the Trans-Texas Corridor master plan, the project, If environmentally approved, would be developed as needed and as private sector resources are available.

Fluor to Design, Build TXU Plant

Irving-based Fluor Corp. recently announced it has reached a definitive agreement with a subsidiary of TXU, Oak Grove Management Co., to complete engineering, procurement and construction services for two new units as part of the Oak Grove power plant project.

Fluor has begun limited scope "Phase One EPC" work, with a definitive, fixed-price agreement for the total facility to be determined. Final notice to proceed is expected before the end of the year once air permits and financing are in place.

TXU is working on a major national solid-fuel power generation development strategy and will continue to work with Fluor to identify additional opportunities.

The Oak Grove project, a 1,634 MW super-critical lignite power plant, which will include best available control technology to minimize emissions, will be located in Robertson County in Central Texas. The new plant is expected to have among the lowest sulfur dioxide, nitrogen oxide and mercury emissions in the nation and be 80 percent cleaner than the average U.S. coal plant.

Oak Grove will be constructed at the site of a previously planned power plant that has significant infrastructure already in place. Unit 1 and Unit 2 at Oak Grove are expected to be substantially completed in April and October 2009, respectively. Upon completion, Oak Grove will power approximately one million homes.

The design, engineering and procurement efforts are under way in Fluor's Greenville, S.C., project execution office. Fluor and TXU have assigned joint teams that will apply lean design and construction concepts to improve cost, schedule and reliability of the new units.

Fluor estimates that the Oak Grove project will create, at peak, approximately 2,500 construction jobs for the region. Fluor will begin soliciting qualified project workers from throughout Central Texas, in particular working with state and local government representatives and community and technical colleges. Recruiting workers for the project will continue through the summer.

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