According to that statement, the three roads will make $8.7 billion in toll revenue through 2042. In that same time, there will be $7.2 billion in debt payments for that borrowed $2.2 billion, $1.1 billion in operations costs, $752 million in routine maintenance and $388 million for long-term maintenance. The net of all that? Almost $750 million in the hole over 35 years.
More like an economic jalopy.
Yeah, the traffic projections aren’t panning out either. Traffic is about 73% of the projections. Didn’t see that one coming
In other privatization news, the Camino Columbia toll road (the first private ‘superhighway’ in Texas) was sold… to one of it’s original investors. The road was built for $90million and sold for $12million. What a great investment! If you’re looking for other great investments with a similar return, you might try Bear Stearns. I hear they are trying to unload some SIV’s chock full of subprime paper.