Abstract:The article describes the financing and construction of the first 100% privately financed toll road in the modern United Sates, and the first fully automated toll road in the world. This build-transfe...The article describes the financing and construction of the first 100% privately financed toll road in the modern United Sates, and the first fully automated toll road in the world. This build-transfer-operate (BTO) project involves a $125 million financing package for the 10-mile-long S.R.91 express lanes slated to open in 1995. Four express lanes, two in each direction, will be added in the median along a consistently jam-packed stretch of the Riverside Freeway in Orange County, California. Toll lanes will be fully automated, electronic transponders in cars will debit accounts, and sensors embedded in the road will count traffic. The details are described of the the financing structure, which is described as a giant mortgage in which the equity partners put in a 15% down payment of sorts, equal to about $19 million in cash. It is noted that the key to success is to tie together the interests of the private sector, the public, and the lenders.Read More
Publication Year: 1993
Publication Date: 1993-08-02
Language: en
Type: article
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