The Tennessee Transportation Modernization Board unanimously approved DriveTN on Wednesday as the private-sector partner for the I-24 Southeast Choice Lanes project, clearing the way for what state officials call America’s largest interstate choice-lanes public-private partnership with an estimated price tag of $9.2 billion. The decision comes after the passage of the Transportation Modernization Act three years ago in 2023.
Governor Bill Lee called the approval a turning point.
“When we set out to modernize transportation infrastructure in Tennessee, we knew incremental change would not be enough to meet the demands of one of the fastest-growing states in America,” Governor Bill Lee said in a statement following the move, vowing that the project will be “transformational” and “strengthen our infrastructure for generations to come.”
DriveTN is a group of corporations selected through the state’s competitive procurement process. Four proposals were received; competing bids offered roughly $7.25 billion and $7.4 billion in concession value, while one required a state subsidy. The winning companies include Cintra, Webber, and their parent company Ferrovial; Transurban; Tikehau Star/Infra/Capital; and AECOM.
Ferrovial, which leads the consortium, pointed to its experience delivering similar projects in Dallas-Fort Worth, Charlotte and the Washington, D.C., region. On Virginia’s 66 Express Outside the Beltway corridor, peak travel times have been reduced by as much as 50 percent while providing reliable conditions, according to the company. Ferrovial CEO Ignacio Madridejos said, “We are honored to be selected to deliver this landmark transportation project for Tennessee, which will enhance mobility and support the state’s continued economic success. As communities across the U.S. continue to grow, innovative infrastructure investment is essential to meeting future transportation needs. We look forward to delivering a project that improves connectivity and creates value for decades to come.”
The plan calls for the consortium to design, build, finance, operate and maintain two new optional toll lanes in each direction along approximately 26 miles of Interstate 24 between Nashville (near I-40) and I-840 near Murfreesboro. Existing general-purpose lanes will remain “free” and unchanged.
Lee also signed Executive Order 114 creating the Tennessee Strategic Transportation Accountability Council to oversee P3 revenues.
The project’s approval also includes the potential development of three future corridor enhancements. Under the proposal, the private partner could negotiate with TDOT to extend Choice Lanes north along I-24/I-65 through downtown Nashville, east along I-40 near Nashville International Airport, or south along I-24 through Murfreesboro and along I-840 toward U.S. 41.
Each enhancement would require a separate development framework agreement between TDOT and the developer, along with applicable regulatory approvals, before construction could begin
The project represents the culmination of a plan Lee and state transportation officials began publicly developing several years ago.
In a February 2023 interview with The Tennessee Star’s CEO and Editor-in-Chief Michael Patrick Leahy, then-TDOT Commissioner Butch Eley explained that the administration was studying public-private partnerships as a way to expand Tennessee’s transportation infrastructure while allowing private companies to finance and operate new lanes.
Eley said the model would allow Tennessee to retain ownership of its roads while private partners made the upfront investment and received a portion of the revenue generated by the Choice Lanes.
“We’ll never sell any of our infrastructure assets in that way,” Eley said at the time. “They would come in for a long-term lease to where they would finance, design, build, operate, and maintain that roadway.”
Eley explained that the administration had studied Choice Lane systems in other states, including Texas, before pursuing the concept in Tennessee. He emphasized that the lanes were intended to give drivers an option rather than eliminate access to the existing interstate lanes.
“People are literally given a choice each and every day whether they want to get in that lane and pay a user fee or not,” Eley said. “They can stay in the regular lanes all they want to.”
Moving forward, TDOT Commissioner Will Reid said the department’s “responsibility now is to verify the commitments, complete the required reviews, finalize the agreement, and deliver as promised.”
TDOT will hold public open houses on September 8 at the Nashville Public Library Pruitt Branch and September 9 at the Smyrna Event Center, both from 12:30 p.m. to 6 p.m., to provide additional information and answer questions about the project.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Nashville Traffic” by TNDOT.
