Appendix A Compensation and Non-Compete Clauses in Privatization Agreements

STATE

TOLL ROAD

COMPENSATION CLAUSE

California

CA 125

The agreement prevents the state from building or improving competing roads that were not already included in the state's 20-year plan. A provision was included to require the state to compensate the private operator if such actions were taken.

Colorado

Northwest Parkway

The concession agreement contains a compensation clause requiring the highway authority to compensate the concessionaire if any unplanned road or transit projects are built in the corridor and hurt revenues. If the authority can't pay, the private entity can keep any revenue sharing money, increase tolls beyond limits, or extend the lease. Currently the state is considering a proposed realignment and extension of West 160th Avenue, which the concessionaire considers a "probable adverse action" necessitating compensation. The highway authority claims this project does not violate the compensation clause.

Colorado

E-470

Commerce City signed a non-compete agreement with the toll authority requiring them to intentionally slow traffic on the nearby Tower Road. The speed limit was changed to 40 mph from 55 mph, and traffic lights were added at three intersections, including on a dirt road. The restrictions were eventually rescinded and the speed limit was raised to 50 mph, though the traffic lights remain.

Indiana

East-West Toll Road

Indiana is required to pay the investors for reduced toll revenue when the state performs construction on the road.

Texas

SH 130 Segments 5&6

The contract includes a provision that TxDOT will pay Cintra-Zachry for lost profits if state projects reduce toll traffic, such as the widening or building of competing roads. The state can earn credit for pushing traffic to the toll road, such as by lowering the speed on I-35.

Virginia

Capital Beltway

The state is required to compensate the concessionaire for lost toll revenue if the number of HOVs encroach upon tollable capacity beyond a certain threshold.