Penn. Turnpike to be in private hands in $12.8 billion deal [View All]

[jpljr77]

Interesting stuff. I guess I'm glad the deal is only a lease, not an outright purchase. Still, they are literally agreeing to sell infrastructure to foreign firms here:

Spanish firm offers $12.8 billion to lease Pa. Turnpike

By Paul Nussbaum

INQUIRER STAFF WRITER

A Spanish toll-road operator won the bidding war to operate the Pennsylvania Turnpike, offering $12.8 billion for a 75-year lease, Gov. Rendell said today.

The proposal by Abertis Infraestructuras, of Barcelona, must be approved by the Pennsylvania legislature, and legislative leaders in Harrisburg have said the plan faces tough sledding with lawmakers.

In making the largest bid ever for the private operation of a U.S. toll road, Abertis partnered with a subsidiary of U.S. investment bank Citigroup, and Spanish investment firm Criteria CaixaCorp.

Abertis operates toll roads in Spain, France, Italy, the United Kingdom, Argentina and Puerto Rico. The company also operates airports, telecommunications systems and parking garages.

Under Rendell's plan, the Abertis/Citi consortium would lease the turnpike for 75 years with the right to raise tolls 25 percent next year and 2.5 percent or the rate of inflation every year after that.

The entire story: http://www.philly.com/philly/hp/news_update/20080519_Spanish_firm_offers__12_8_billion_to_lease_Pa__Turnpike.html