Tennessee approves record interstate toll lane partnership

Overview

Updated Sep 17

Tennessee approved a private consortium's $9.2 billion plan to build tolled express lanes on Interstate 24 between Nashville and Murfreesboro. DriveTN will pay the state $24.8 billion over 50 years in exchange for the right to build and operate the lanes.

The deal is the first project under Tennessee's 2023 Transportation Modernization Act, which authorized public-private partnerships for state highways for the first time. It's the largest U.S. concession for interstate managed lanes to date, and it signals how states may fund road construction without raising gas taxes.

Why it matters

Drivers on Nashville's busiest corridor will pay congestion-priced tolls to skip traffic, while Tennessee gains a new $24.8 billion road-funding stream.

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Key Indicators

$24.8B

Projected concession value to Tennessee

DriveTN's offer over the 50-year concession term, six times the previous U.S. record

$9.2B

Construction cost

More than double TDOT's $4.5 billion baseline estimate, reflecting added features

50 years

Concession term

DriveTN operates the lanes under a revenue-risk model, assuming toll and traffic risk

$1.1B

Federal TIFIA loan request

Tennessee applied for the loan through the Build America Bureau

42 km

Length of new choice lanes

Roughly 26 miles of I-24 between Nashville and I-840, two lanes in each direction

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Bill Lee

Governor of Tennessee

In office; championed the Transportation Modernization Act

Bryan Bedford

Major Projects Bureau Chief, Tennessee Department of Transportation

Managing the DriveTN agreement finalization

Organizations Involved

Tennessee Department of Transportation

State Agency

Leading the I-24 Choice Lanes procurement and agreement finalization

State agency that ran the I-24 Choice Lanes competitive procurement and will finalize the DriveTN agreement.

DriveTN

Private Consortium

Selected as preferred partner for I-24 Choice Lanes

Consortium selected to design, build, finance, operate, and maintain the I-24 Choice Lanes under a 50-year revenue-risk concession.

Transportation Modernization Board

State Oversight Board

Approved DriveTN selection; authorized three corridor extensions for study

Board created by the Transportation Modernization Act to approve Tennessee highway public-private partnership projects.

Build America Bureau

Federal agency unit

Reviewing Tennessee's TIFIA loan application and final agreement

U.S. Department of Transportation office overseeing federal credit programs for infrastructure, including TIFIA loans.

Timeline

May 2023 September 2026

4 events Latest: September 17th, 2026 · 2 months ago

Tap a bar to jump to that date

September 2026
Engineering News-Record details record concession terms
Latest Reporting

Engineering News-Record publishes full analysis of the $24.8 billion concession, the largest U.S. highway P3 to date.
September 17th, 2026
August 2026
Board selects DriveTN for I-24 Choice Lanes
Decision

Transportation Modernization Board unanimously approved DriveTN's $9.2 billion proposal with $24.8 billion concession value.
August 19th, 2026
Gov. Lee creates P3 revenue oversight council
Policy

Executive Order 114 established the Tennessee Strategic Transportation Accountability Council to oversee concession revenues.
August 19th, 2026
May 2023
Transportation Modernization Act signed into law
Legislation

Tennessee authorized public-private partnerships for highways for the first time, enabling tolled managed lanes.
May 2023

Scenarios

Tennessee closes record $24.8 billion I-24 concession with DriveTN

Likely Resolves by Q2 2027

Discussed by: TDOT officials, who expect financial close in early to mid 2027

The finalized agreement keeps the $24.8 billion concession value and $9.2 billion construction cost. DriveTN begins design work and phased construction on the 26-mile corridor, with the state receiving $1.5 billion at financial close and the rest spread over construction and the 50-year concession term.

I-24 concession value revised down during federal review

Possible Resolves by Q2 2027

Discussed by: Bryan Ledford (TDOT), who told the board traffic projections 'diverged greatly' among bidders; Build America Bureau review process

Federal due diligence could challenge DriveTN's traffic and revenue forecasts, which underpin the $24.8 billion offer. The concession value is not guaranteed until final terms are secured, and the $1.5 billion upfront payment structure leaves room for renegotiation during the review window.

I-24 Choice Lanes opening pushed past 2033

Possible Resolves by End of 2033

Discussed by: Engineering News-Record, which noted TDOT has not finalized construction start, sequencing, or duration

Federal traffic analysis assumed a 2032 opening for TDOT's baseline design. DriveTN claims its proposal delivers more than a year ahead of schedule, but an eight-year construction period starting after a 2027 financial close points to an opening in the mid-2030s even without delays.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2006-2014

Indiana Toll Road lease (2006)

Indiana leased its 157-mile toll road to Cintra-Macquarie for 75 years in exchange for $3.8 billion. The operator doubled tolls and took on heavy debt to fund the lease payment.

Then

Traffic fell short of projections and toll increases sparked public backlash.

Now

The venture later filed for Chapter 11 bankruptcy because of heavy debt, a cautionary tale for private toll concessions.

Why this matters now

Cintra is a lead partner in DriveTN. The Indiana Toll Road shows how aggressive revenue forecasts can unravel over a multi-decade concession.

2024-2025

Georgia SR-400 Express Lanes (2024-2025)

Georgia awarded a concession for express toll lanes on State Route 400 north of Atlanta with a $3.8 billion concession fee, the previous U.S. record.

Then

The deal marked the growing appetite among states for monetizing managed lanes.

Now

Set the benchmark that Tennessee's $24.8 billion figure exceeds by six times.

Why this matters now

Shows the escalation in concession values as states negotiate larger payouts from private operators in exchange for tolling rights.

January 2005

Chicago Skyway lease (2005)

Chicago leased its 7.8-mile Skyway to a Cintra-Macquarie joint venture for 99 years in exchange for $1.83 billion. It was the first major privatization of an existing U.S. toll road.

Then

The lease gave Chicago a large cash infusion without raising taxes.

Now

Established the U.S. toll concession model that Tennessee's I-24 deal extends, and marked Cintra's early entry into the U.S. market.

Why this matters now

Also involved Cintra. The Skyway showed the template for states and cities monetizing highway assets through long-term private operation.