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Penn Turnpike Leases for $12.8B

HARRISBURG, PA-Turnpike plan could hike tolls 25% next year to raise $1.1 billion annually for highway and bridge improvements.

By Casey Freeman | Updated on May 19, 2008

HARRISBURG, PA-Citi Infrastructure Investors partnered with Abertis Infraestructuras and Criteria CaixaCorp won the bid for the lease of the Pennsylvania Turnpike with a $12.8 billion, 75-year plan, Gov. Ed Rendell announced yesterday. The plan could raise $1.1 billion a year for highway improvements, but still must go through the state legislature. If passed, the state would not need I-80 tolls. If approved, this would be the largest bid for private operation of a US toll road.

“This is a great day for Pennsylvania,” Rendell said in a prepared statement. “We urgently need new funding for road and bridge repair, and a turnpike lease will help us meet that need. Under the terms and conditions we set, the turnpike will be upgraded and tolls will be no higher than the Turnpike Commission will charge.”

Abertis, a Spanish toll road operating company from Barcelona, could retain the right to raise tolls 25% next year, and then hike tolls 2.5%, or the rate of inflation, the following years. The firm partnered with Spanish investment firm Criteria CaixaCorp and Citigroup. The operator directly manages more than 2,000 miles, while indirectly managing 3,000 miles of toll roads in Spain, the United Kingdom, Italy, Puerto Rico, France and Argentina.

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