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4 clusters · 15 sources · 28 days · First seen · Last updated

Ferrovial Tennessee I-24 express lanes project

Overview

Ferrovial, as part of the DriveTN consortium, reached a commercial close with the Tennessee Department of Transportation for the I-24 Southeast Choice Lanes project. This 50-year concession involves the financing, design, construction, operation, and maintenance of express lanes across a 42-kilometer stretch between Nashville and Murfreesboro.

Following market skepticism and a downgrade by UBS analysts—who estimated returns closer to 7%—Ferrovial management projected double-digit returns on equity for the project. The company plans to fund its 65% stake using corporate debt and cash flow from existing operations, specifically utilizing dividends from other U.S. toll operations, to maintain its BBB credit rating without seeking capital increases or asset divestments. The financial scheme for the asset is expected to be finalized before July of next year.

However, the project faces legal challenges. A consortium comprising Acciona, ACS, and Meridiam has filed a lawsuit in the Davidson County Chancery Court contesting the awarding of the concession to Ferrovial, Transurban, and Tikehau Star Infra. The dispute focuses on the transparency and fairness of the procurement process. A central legal issue is whether the consortium waived its right to sue by accepting a $20 million stipend from the Tennessee Department of Transportation. While the state intended the waiver to be ‘full, unconditional and irrevocable’, the consortium has deposited the funds into the court, leaving the validity of the legal challenge to be determined.

In its nine-month financial report for 2026, Ferrovial noted that its highways division grew by 14.7% in comparable terms, driven largely by North American operations, including projects in Tennessee and Georgia. Regarding the I-24 project, Ferrovial clarified that the initial investment will be lower than originally estimated, with the contract value adjusted to $21 billion. Payments are expected to be structured over several decades, with approximately $7.7 billion to be disbursed by 2035.

Entities

Ferrovial · Tennessee Department of Transportation · Nashville · ACS Group · Davidson County Chancery Court

Timeline

  1. [BUSINESS] 10 sources
    Ferrovial reports increased revenue and record construction order book

    Ferrovial reported 7.4 billion euros in revenue for the first nine months of 2026, driven by North American infrastructure and a record construction order book.

  2. [BUSINESS] 2 sources
    Acciona and ACS challenge I-24 highway concession in Tennessee

    Acciona and ACS are challenging the $34 billion I-24 highway concession award to Ferrovial in Tennessee, questioning procurement transparency and the validity of previous legal waivers.

  3. [BUSINESS] 3 sources
    Ferrovial projects double-digit returns for Tennessee I-24 project

    Ferrovial projects double-digit returns for its I-24 express lanes project in Tennessee, aiming to fund the $9.2 billion construction through existing cash flows and dividends from other U.S. operations.

  4. [BUSINESS] 5 sources
    Ferrovial secures Tennessee I-24 express lanes contract

    Ferrovial has secured a 50-year concession for the I-24 Southeast Choice Lanes in Tennessee, though high bid costs have raised investor concerns regarding capital discipline and profitability.

Sources

ad-hoc-news.de · beteve.cat · cronicadecantabria.com · diarioestrategia.cl · dominicanaaldia.com · e00-expansion.uecdn.es · economiadigital.es · empresaexterior.com · expansion.com · lacronicadebadajoz.elperiodicoextremadura.com · larazon.es · lavanguardia.com · merca2.es · okdiario.com · uruguayaldia.com.uy

This summary has been updated 3 times: see revision history