PROJECTOVERVIEW

CHESAPEAKE BAY BRIDGETUNNEL PARALLEL THIMBLE SHOAL TUNNEL

Preparedfor:VirginiaTransportation

ConferenceOct.29,2015

HistoryofCBBT

1956 - CBBT Commission enabled to build the fixed crossing.

1960 - Revenue Bonds were issued to fund construction

1960 - Construction commenced in September

1964 April 15, construction complete and opened to traffic

1990 General Assembly enabled the District to build the

Parallel Crossing in 3 Phases

1995 - Phase I (Parallel Bridges) construction began in July

1999 - Phase I was fully completed approximately 10 % under

budget

ProjectOverview(Phase2)ParallelThimbleTunnel

No Right of WayAcquisitionNo Large-Scale 3rd PartyUtility Relocation

ExistingCrossover

#2Island

ExistingThimbleShoalChannelTunnel(NBTraffic)

#1Island

FishingPier

ProposedThimbleShoalChannelTunnel(SBTraffic)

ApproximateEdgeofExistingIsland

ProjectElements:ProposedIsland

BondCounsel

NixonPeabody

Underwriter

BankofAmerica/Merrill

Lynch

ConstructionManager

HNTB

DesignBuilder

TobeawardedMay2016

CBBTCommission

CBBTCommissionProjectDevelopmentCommittee

FredStant,TommyMeehan,JohnMalbon,WayneColeman,GeorgeClarke

CBBTDistrictStaff

StrategicAdvisor

Moffatt&NicholPennoni&Assoc.Arcadis

Ernst&Young

MunicipalAdvisor

PublicFinancial

Management

Traffic&RevenueAdvisor

SteerDaviesGleave

JeffHolland,TomAnderson,BobJohnson,MikeCrist,KevinAbt

ProjectCounsel

Nossaman

CommissionCounsel

Willcox&Savage

DesignManagerJacobsHNTBCOWISolstice

Environmental,LLC

ProjectAdvisory

OTP3

CBBTParallelThimbleShoalTunnelProjectTeam

ProjectDevelopment ProjectFinancing

WHY IS THIS PROJECT SO IMPORTANT? Route 13 Corridor is a Corridor of Statewide Significance Lack of viable alternative route Lane closures for oversized escort loads Lane closures for ordinary maintenance work Age of existing tunnels Improvement in levels of service and safety

IMPORTANT BUSINESS POINTS TO CONSIDER 20-25% of VB tourists utilize the Coastal Corridor

o VB exit surveys

CBBT is a political subdivision of the Commonwealth CBBT operates as a business, direct and fair

EXECUTIVE BRANCH AND LEGISLATIVE SUPPORT AND APPROVAL FOR THE PROJECT

CommonwealthofVirginiaApproval

Project is enthusiastically supported by: Governor of the Commonwealth Administration Secretary of Transportation Both Houses of the General Assembly

ProcurementMethodology

Two-Step Design-Build Procuremento Request for Qualifications (RFQ)/Request for Proposals (RFP)o Shortlisted 4 teamso Technically Acceptable Low Price o Stipend to be provided to unsuccessful shortlisted teams who submit

compliant proposalso Design-Build Teams selected construction method when submitting

Statement of Qualifications Bored vs. ITT

CBBTThimbleShoalTunnelProjectDevelopmentTimeline

May 2013 Commission Accelerated Phase IIA via Design Build Delivery Model; saves 18 months in overall Project Schedule and $$ in Project Costs and Cumulative Debt Service over the life of the bonds.

Aug. 2013 Commission Adopted Revised Toll Rate Schedule

Nov. 2013 Unsolicited Proposal from PC2 Received Mapping of Project Site Awarded to JacobsGeotechnical Analysis of Project Site Awarded to Jacobs

Jan. 2014 Revised Toll Rate Schedule ImplementedStrategic Advisor Award: Moffatt & Nichol

Mar. 2014 NEPA EA Process Commenced

Apr. 2014 PC2 Unsolicited Proposal Rejected

May 2014 Municipal Advisor Award: Public Financial Management

Aug. 2014 Design Manager Award: Jacobs

Nov. 2014 Geotechnical Borings and Geotechnical Data Report Completed

CBBTThimbleShoalTunnelProjectDevelopmentTimeline(continued)

Dec. 2014 Draft Investment Grade Traffic & Revenue Study Completed

Dec. 2014 Draft Environmental Assessment Signed by FHWA

Dec. 2014 Updated LOI submitted to TIFIA Joint Program Office

Jan. 2015 Project Counsel Award : Nossaman LLP

Jan. 2015 Geotechnical Borings for Bored Solution and Offshore Disposal Commence

March 2015 Geotechnical Borings for Bored Solution Complete

March 2015 Bond Counsel Award: Nixon Peabody LLP

May 2015 Issue Request for Qualifications for Parallel Thimble Shoal Tunnel

May 2015 Host Non-Mandatory Design-Build Conference

May 2015 Lead Investment Banker Award: Bank of America Merrill Lynch

CBBTThimbleShoalTunnelProjectDevelopmentTimeline(continued)

July 2015 Receive Statements of Qualifications

July 2015 Issue Request for Qualifications for Construction Manager

July 31, 2015 FONSI approval received

August 2015 Shortlisted Four Design Build Teams: Archer Western-Vinci Construction TunnelBuilders Bouygues TP/Traylor/Manson Dragados Team: Dragados USA and Schiavone Construction Company, LLC SKW Tunnel Builders: Skanska USA Civil SouthEast, Inc.; Kiewit Infrastructure Co.; and

Weeks Marine, Inc.

August 2015 Issued Draft Request for Proposals

Sept. 2015 Construction Manager Award: HNTB

Oct. 2015 Completed 2nd round of RFP Iterative Meetings with Shortlisted DBs

ProcurementSchedule

Activity Schedule

FinalRFP February,2016

TechnicalProposalsdue March,2016

Technicalproposalevaluationcomplete April,2016

Pricing/Finaltechnicalproposalsdue April,2016

Noticeofintenttoaward May,2016

FinancialClose September,2016

NationalEnvironmentalPolicyAct(NEPA)

Environmental Assessment (EA) FHWA was the lead federal agency Multiple agencies involved Purpose was to identify potentially significant impacts Draft EA completed December 2014 Finding of No Significant Impact (FONSI) approval received

July 31, 2015

NationalEnvironmentalPolicyAct(NEPA)

Permitting

Contractor will obtain permits and clearances District is a partner with contractors to obtain the

permits and clearances Work to facilitate permitting was initiated during

NEPA process Navigation/Maritime coordination Identification of possible permit conditions Dredge material disposal

Information is being made through Draft RFP DB process

DredgedMaterialDisposal

Dredged Material from the Lower Chesapeake Bay is not authorized for placement at the Craney Island Dredged Material Management Area (CIDMMA)

District has worked with Corps and EPA over the last 15 months to establish concurrence to place dredged material in the Norfolk Ocean Disposal Site (NODS)

Corps posted Section 103 Public Notice on 10/25/15

22NM

OceanDisposalArea

OffshoreDisposal

CIDMMA AtlanticOceanChannel

ProjectSite

Mapping

Conducted a 3D Laser Survey o From Lando From Watero Underground Utility Location

Surveyed o Trestleso Islandso Tunnel

Created a 3D CADD Model of the Project Area Incorporating Bathometry from Geotechnical

Investigation into CADD Model

Existing

ThimbleShoalChannelTunnelDesign

FullTransverse

CrossSection/ITTConstructionMethod

CrossSection/TunnelBoringMachine

With its rotating cutting wheel, the tunneling machine breaks the materialfrom the tunnel face. The material is then transferred to the belt conveyorsystem in the rear of the shield via a screw conveyor, while the hydrauliccylinders press forward continuously.

Cuttingwheel

BeltConveyor

ScrewConveyor

Excavationchamber

Excavation Techniques EPB Machine

TunnelBoringMachine

PermissibleLaydownArea/LittleCreek

FinancingTasks CompletedorUnderway

Municipal Advisor selection Traffic & Revenue consultant selection TIFIA Letter of Interest submission and Update VTIB Application submission Investment Grade Traffic & Revenue Study

Stated Preference Survey Existing Conditions Analysis Regional Land Use and Socio-economic Analysis Econometric and Network Modeling Traffic & Revenue Forecast Sensitivity Analysis

FinancingTasks Completed

Selection of Bond Counsel

Credit Rating Review

Selection of Underwriting Team

TIFIA financing activities (ongoing)

PlanofFinance

10% toll increase commenced in January 2014o First full year of new tolling regime yielded over 14.4%o No degradation in traffic volumeo FY 2015 - Traffic up 3.2%; Revenues up 11.0%o FY 2016 To Date Traffic up 7.9%; Revenues up 6.6%

SDG prepared an investment grade Traffic & Revenue Study

o T&R model benefits from actual results of January 2014 toll rate increaseo Forecast increases for FY2015 achieved in just 9.5 monthso FY 2016 traffic increase projected @ 72,000; actual increase has already reached

100,000

Conservative estimates for investment income, operating expenses and renewal/replacement expenses

o Fifty year history of tolling and managing operations and maintenance

Anticipate BBB Rated Revenue Bondso CBBT Toll Revenue Bonds are currently rated A- by Fitch

Sources

Funding sources consists of:o First Tier Toll Revenue Bondso Subordinate Toll Revenue TIFIA Loan (33% of eligible costs and with a rural rate)o VTIB Loano CBBTD General Fund transfer from FY 2014 to FY 2020

Thankyou!

www.cbbt.com