Penn. Turnpike to be in private hands in $12.8 billion deal

[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

[Yael]

1. I can't believe Rendell went through with this.

*sigh*

[DJ13]

2. It shouldnt be legal for a government to sell (or lease) property ....

......owned by the citizens without a referendum in an election to see if the owners (voters) agree with the deal.

[jpljr77]

3. Well, the article does say that the legislature has to approve it.

So I reckon that will pass as the will of the people. But in all honesty, what are the chances that a bunch of Congresspeople are going to turn down $12.8 billion?

[Disturbed]

5. It will pass no matter if the citizens of the State don't want

the deal.

[ladjf]

4. Bad idea.

[FarCenter]

6. May as well sell turnpikes now

As the price of crude goes up and the consumption of gas and oil falls,

-- there won't be enough tolls to keep them in repair and

-- the price of asphalt to pave them will be too high.

Anybody doing 30-year financing on highways isn't reading the tea leaves correctly.

[Earth_First]

7. Any bets that the state fuel taxes still go to maintain the infrastructure on these highways?

Or the property tax levys that are collected up and distributed towards transportation appropriation will still be collected and doled out...?

So in all reality I should be receiving another tax rebate or reduction in property and fuel taxes, right?

...right?