Several projects, including the Indiana Toll Road and the Chicago Skyway, yielded large up-front payments to governments by concessionaires in exchange for the right to operate transportation facilities. Proceeds from the Chicago Skyway concession were largely spent on repaying debt, creating a trust fund, and funding public social initiatives. Proceeds from the Indiana Toll Road were used to repay debt and fund the state's ten year transportation plan (Subcommittee on Highways and Transit, House Transportation and Infrastructure Committee 2007a). However, both deals have raised concerns regarding proper valuation of concession deals, the trade-offs between up-front and long-term payments, and who benefits and who pays (Baxandall 2007; Enright 2007).
The aforementioned concession deals transferred toll collection and road operations for 75 to 99 years to the private sector. Although the money has been used to meet immediate financial needs, and the repayment of debt benefits the government in the long term, the reality is that future generations might be paying for benefits that were substantially realized in the early years of the concession. On the other hand, up-front payments could also be invested in capital projects that may have a useful life beyond the term of the deals and generate public benefits over the long term.