Private partners will pay Georgia DOT $4.05B for the right to build the highway and BRT expansion – delivering critical infrastructure with zero taxpayer cost.
The recently announced SR 400 Express Lanes project in Georgia is a landmark moment in American infrastructure delivery. With a total cost of approximately $4.6 billion, it includes the largest Transportation Infrastructure Finance and Innovation Act (TIFIA) loan ever issued – $3.89 billion – and represents what is arguably the largest public-private partnership (P3 or PPP) in U.S. Department of Transportation history. This is a major milestone for domestic infrastructure investment, proving that well-designed and innovative delivery models can deliver modern infrastructure without placing new burdens on taxpayers.
One of the most striking aspects of the SR 400 deal is that it requires zero up-front state dollars. Instead, the private partner – SR 400 Peach Partners – will design, build, finance, operate, and maintain the express lanes under a 50-year concession. In exchange for the right to collect toll revenue during that period, they will pay the state an up-front concession fee of $4.05 billion. Rather than cost state tax payers a dime, the Georgia DOT now has immediate cash on hand to invest elsewhere.
To finance their side, the private partner is borrowing $3.89 billion from USDOT via the TIFIA program. Most importantly, this is not a grant, but a loan. This loan will be repaid in full, with interest, from future toll revenue. Georgia bears no responsibility for repayment; the private company takes on that risk. Equally important, private investment brings stronger financial discipline to infrastructure delivery. When repayment depends on long-term toll revenue, firms rigorously assess ROI, project feasibility, and cost efficiency. This level of scrutiny often exceeds what’s seen in public-sector investments, which can result in misallocated resources or the notorious “bridge to nowhere.” This structure demonstrates a clear federal commitment to modern delivery models, where private capital and accountability replace public debt and cost overruns.
But what makes SR 400 truly forward-thinking is that it’s not just a highway expansion. It includes 12 miles of Bus Rapid Transit (BRT) infrastructure. BRT is an underutilized tool in the American infrastructure toolkit, despite its high return on investment and flexibility. Too often, planners reach for costly, inflexible passenger rail projects as a default. This project proves that smart, scalable transit solutions can and should be embedded in highway investments.
At Aii, we’ve long advocated for performance-driven infrastructure policy that brings together public purpose and private expertise. The SR 400 project embodies exactly that. It shows how public agencies can harness private capital to deliver major infrastructure improvements, preserve public ownership, reduce taxpayer exposure, and accelerate multimodal mobility solutions.
We’re encouraged by the federal administration’s strong support for this project – and for the broader use of P3s and TIFIA financing to address our country’s growing infrastructure needs. The SR 400 Express Lanes should serve as template for the future of American infrastructure delivery, with local customization and nuance as needed.
Written by Aaron Shavel, Policy Fellow
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization working to advance innovation across industry and public policy. The only nationwide public policy think tank dedicated to infrastructure, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, eminent domain, energy, infrastructure, innovation, technology, and transportation.