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Follow TURFTxDOT lied: private toll operators guaranteed profit on taxpayers' dime
The article states:
"The developer is guaranteed a set reimbursement, creating an element of risk for TxDOT if use of a tollway falls below projections."
Also, how is their access to capital better than the public's when they're using federally-backed TIFIA loans and PABs that are tax-exempt just like public sector toll projects?
"They (Cintra) will borrow about $500 million from private lenders and seek an equal amount in government-backed loans from the Federal Highway Administration."
We now know the answer to these questions. See why the public doesn't trust a word out of the mouths of TxDOT?
Texas Officials Seek a New Path To Private Transportation Funding
Tuesday, February 2, 2010
By Richard Williamson
The Bond Buyer
DALLAS — With a statewide moratorium on new private toll projects still in place after more than two years, the Texas Transportation Commission is planning a bypass around that financial barrier to leverage existing funds.
While the financial constraints exist statewide, the Dallas-Fort Worth Metroplex serves as the incubator in terms of innovative public-private finance, say Texas Department of Transportation officials.
“This is, in my view, the premier national laboratory for transportation projects,” said TxDOT spokesman Chris Lippincott. “There’s a lot of interesting stuff going on.”
The latest scheme — one that will require rule changes and exhaustive risk analysis from department staff — would allow a private developer to design, finance and rebuild a 28-mile section of Interstate 35-East from Dallas northward to Denton in exchange for reimbursement from TxDOT.
The finance method, known as pass-through tolling, is relatively new but well established with local governments, particularly counties. The system has never been used with a private developer, according to TxDOT. Nevertheless, current law allows the use of pass-through tolling by private companies.
Read the rest of the story here.