As more concessions for the operation and maintenance of existing toll roads reach commercial and financial close36 , more public authorities are considering PPPs.
On May 15, 2008, Pennsylvania Governor Ed Rendell announced that the Commonwealth had selected a $12.8 billion proposal for a concession of the 531-mile Pennsylvania Turnpike. The proposal was submitted by a consortium made up of Citi Infrastructure Investors, Abertis Infraestructuras, a Spanish toll road operator, and Criteria CaixaCorp, a major shareholder of Abertis. The consortium agreed to pay the $12.8 billion upfront for Pennsylvania to invest in a long term fund that would generate significant annual payments to be used for Pennsylvania roads, bridges and transit. Approval of the State legislature is required before Governor Rendell can accept the bid and enter into the concession. In 2007, Pennsylvania's legislature authorized an alternative plan for the public Pennsylvania Turnpike Commission to seek Federal approval to toll I-80, an Interstate highway which runs parallel to the Pennsylvania Turnpike to the north, to raise additional revenue. According to Governor Rendell, the payments from the private concession "would average 13 percent higher than the maximum available under the I-80 tolling plan, assuming investment returns equal to the average earnings of the Pennsylvania State Employee Retirement System over the past 20 years."37
On May 5, 2008, the Florida Department of Transportation released a Request for Qualifications for a concession to lease, maintain, operate and receive toll revenue from the 78-mile Alligator Alley toll road on I-75 in South Florida. The RFQ was reissued on June 25, 2008, and the deadline for submitting Statements of Qualification is July 23, 2008. The concession will run for 50-75 years and will include an upfront payment and revenue sharing, as required by State statute. Florida also reportedly may be considering concessions for the Beachline Expressway on FL-527 and the Sunshine Skyway Bridge on I-275.38
While it is not clear which, if any, of these proposed PPPs will close, the concessions for the Chicago Skyway, ITR, Pocahontas Parkway and Northwest Parkway establish long-term concessions of existing toll roads as a model for addressing transportation needs and improving operational accountability with respect to existing facilities.
PPPs for the Operation and Maintenance of Existing Toll Facilities in the United States | |||
Project | Location | Status | Type of PPP |
Chicago Skyway | Illinois | Closed | Long-term concession to operate and maintain 7.8-mile toll road in Chicago |
Indiana Toll Road | Indiana | Closed | Long-term concession to operate and maintain 157-mile toll road in northern Indiana |
Pocahontas Parkway | Virginia | Closed | Long-term concession to operate and maintain 14-mile toll road outside of Richmond and to build Richmond Airport Connector |
Northwest Parkway | Colorado | Closed | Long-term concession to operate and maintain 11-mile toll road outside of Denver and funding commitment for future expansions |
Dulles Greenway | Virginia | Closed | Refinancing long-term concession to operate and maintain 14-mile toll road between Leesburg and the Dulles International Airport |
Pennsylvania Turnpike | Pennsylvania | RFQ Issued | Long-term concession to operate and maintain 531-mile turnpike (requires legislative approval) |
Greenville Southern Connector | South Carolina | RFQ Issued | Long-term concession to operate and maintain 16-mile toll road in Greenville, South Carolina |
Alligator Alley | Florida | RFQ Issued | Long-term concession to operate and maintain 78-mile toll road in South Florida |
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36 Countries around the world are entering into similar transactions. For example, France accepted bids in 2005 worth $17.7 billion for the sale to private companies of controlling stakes in its three major toll road operators. Vinci, a French construction company, purchased Autoroutes du Sud de la France (ASF), which operates toll roads in the south of France, for $10.9 billion. Eiffage, a French construction company, and Macquarie, an Australian toll road operator, purchased Autoroutes Paris-Rhin-Rhone (APRR), which operates toll roads around Paris and the west, for $8.3 billion. Abertis, a Spanish toll road operator, purchased Societe des Autoroutes du Nord et de l'Est de la France (Sanef), which operates toll roads in northern France, for $6.3 billion.
37 Pennsylvania Turnpike Lease Would Boost Funding For Roads, Bridges, Transit; $12.8 Billion Payment Would Produce More Funding at Lower Cost to Drivers; Cancel Need for I-80 Tolls, Governor Rendell, Press Release, May 19, 2008.
38 Florida Governor Crist Considering Toll Concessions on Three State TRs and Bridge, TOLLROADSnews.com, September 22, 2007.