RELEASE: CONTACT:

IMMEDIATE Tamara Neale 804-786-6458 Tamara.Neale@VDOT.Virginia.gov

CO-Bristol-001 Jan. 11, 2002

Governor Gilmore Announces Signed Deal on Coalfields Expressway

RICHMOND - Governor Jim Gilmore today announced that Virginia's Commissioner of Transportation Charles D. "Chip" Nottingham has signed a comprehensive agreement with a private firm to complete the design and construction of the entire Coalfields Expressway in southwestern Virginia.

"Today's important agreement is proof positive that Virginia is making good on its commitment to deliver top priority projects that will greatly improve the transportation system in southwestern Virginia," said Governor Gilmore. "I am extremely proud of the hard work by the Virginia Department of Transportation (VDOT) to turn this project into reality by developing a partnership with the private sector."

Designated as part of the National Highway System, the Coalfields Expressway will stretch 51 miles from Pound in Wise County, through Dickenson and Buchanan counties, and will link with the West Virginia Coalfields Expressway near Paynesville, West Virginia.

Under Virginia's Public-Private Transportation Act (PPTA), Nottingham signed a comprehensive agreement with Kellogg Brown & Root (KBR) of Houston, Texas to design and build the highway as a public-private partnership. The agreement allows for KBR to conduct preliminary engineering of the entire corridor and sets up the legal framework for building the highway. Following preliminary engineering, construction could begin as early as 2003 depending on continued financial support from the General Assembly, the federal government and the private sector.

"During the past four years, transportation spending has increased a record 143% in the Bristol transportation district. Moving forward with this public-private proposal is consistent with Governor Gilmore's Innovative Progress transportation program, based on providing increased funds and innovative funding for transportation priorities." Commissioner Nottingham said.

Governor Gilmore and the General Assembly designated the Coalfields Expressway as a high priority in the Virginia Transportation Act of 2000, authorizing $53 million to begin engineering and construction of the highway. In August of 2000, the Commonwealth Transportation Board approved the location, following an extensive study of the environmental, economic, engineering, traffic and right-of-way impacts of the highway.

VDOT's preliminary cost estimate of the entire project is $1.6 billion in today's dollars (2002). This is a broad working estimate, without the benefit of design work.

Last August, Nottingham announced that VDOT accepted the initial proposal from KBR and would begin legal negotiations that resulted in today's approval of a comprehensive agreement.