More on PPPs and Road Financing

PA Turnpike tilt-shift

Yesterday we talked about Britain's proposed privatization of their transport infrastructre and made an error when we said the Pennsylvania Turnpike was leased to a private company. In 2007 bidding was opened on the Turnpike and in 2008 the highest bid was received from Spanish firm Abertis Infraestructuras, but ultimately the plan failed. Currently the Turnpike is managed by a state-operated commision that "receives no state or federal taxes to operate and maintain its toll road system." The Pew report, Driven by Dollars, outlines several of the problems that were a part of the leasing proposal and calls for a more open process and transparency.

As funding sources dry up, such as the transportation bill now stuck in gridlock on Capitol Hill or depleted state budgets, transportation agencies will have to come up with new methods of financing which has an increasing interest on private money. The 2011 book Road to Renewal examines private investment in transportation projects from around the world, outlining what works and what doesnt for PPPs as well as how to protect public interests. Louise Nelson Dyble has a recently published article "Tolls and Control: The Chicago Skyway and the Pennsylvania Turnpike" which compares the two plans and raises questions about impact on future transportation planning policy.