First P3 Highway in Texas Improves Mobility, Drives Economic Growth

Fifteen years ago, the Texas Legislature authorized Public-Private Partnerships (P3s), also known as Comprehensive Development Agreements (CDAs), to fast-track critical infrastructure projects. The North Tarrant Express (NTE), a 13-mile corridor across six cities in Northeast Tarrant County from Fort Worth to Euless, became the first P3 highway project approved in Texas.

Construction began in late 2009, and the entire corridor opened to the public on Oct. 4, 2014, nine months ahead of schedule. It featured rebuilt general-purpose lanes, new TEXpress dynamically tolled lanes, and expanded frontage roads.

The P3 model allows for faster construction than traditional design-bid-build approaches. The developer, rather than the state, assumes the financial burden and risk with the funding secured upfront through private equity, infrastructure loans, and bonds.

With a private company behind its development – Cintra, a Ferrovial company – it allowed for the sourcing of hundreds of local contractors, vendors and suppliers with the expertise and capacity to efficiently complete the work – whether relocating utilities, securing right-of-way, moving dirt, placing beams, building signage and toll gantries, or laying asphalt – at all points along the corridor simultaneously. P3s also take advantage of private-sector innovation to reduce the use of tax dollars.

The P3 model has proven successful: since its opening, drivers have made 175 million trips along the NTE corridor, with 25 million of those in 2023 alone. In the last 10 years, traffic has grown by 55 percent, but the managed lanes have mitigated congestion during peak hours by 30 percent, yielding a time savings of three million hours.

Eight million unique vehicles traveled the corridor in 2023, nearly double the number in 2015. Average daily traffic is now 218,000 vehicles. Despite traffic counts significantly higher than pre-construction levels, traffic in the free main lanes is averaging 55 mph, as more drivers choose to travel in the dynamically tolled TEXpress lanes, which have maintained average speeds of 70 mph.

But this project is about much more than improving congestion in the region: The six cities along the corridor have reported increased economic development, new businesses, and renovations of existing ones. The project has also created jobs and significantly boosted revenues for local governments and schools.

In a testament to the P3 model, the project only required $1 billion in public funds to create a $6+-billion transportation asset. The operator continues to provide 24/7 operations and maintenance at no cost to the public. Additionally, through revenue-sharing and bond refinancing, the project has given $34 million back to the state, which can be reinvested in other transportation projects.

Having met specific traffic milestones, the project is now undergoing further expansion, adding new free main lanes and TEXpress managed lanes to accommodate continuing and anticipated growth in the region. At an estimated cost of $414 million, this expansion will be completed at no cost to taxpayers.

The P3 model in Texas is gaining attention from states like Tennessee, North Carolina, Virginia, and Georgia, which are seeking to accelerate infrastructure projects while reducing public funding. The NTE corridor demonstrates that expanding mobility, easing congestion, and fostering economic growth are achievable through public-private partnerships.