# Privately-financed highways in bankruptcy



## CHamilton (Nov 18, 2014)

The Indiana Toll Road and the Dark Side of Privately Financed Highways



> This is the first post in a three-part series on the Indiana Toll Road and the use of private finance to build and maintain highways.
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## Bob Dylan (Nov 18, 2014)

The latest Boondoggle, er Toll Road in Austin is on the verge of Bankruptcy and the State of Texas ( is the taxpayers) will be on the hook for the Hundreds of Millions due on the Bonds!

( the operating corporation is a joint venture of interests in Spain, Mexico and the contractor that built the Road with State DOT money!)


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## rickycourtney (Nov 18, 2014)

Down in the San Diego area SANDAG purchased the South Bay Expressway toll road after the private company that built it went bankrupt. Just north in Orange County the Eastern/Foothill toll roads have seen some success, but the sister San Joaquin Hills Toll Road is struggling and has had to be refinanced multiple times.


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## Paulus (Nov 18, 2014)

rickycourtney said:


> Down in the San Diego area SANDAG purchased the South Bay Expressway toll road after the private company that built it went bankrupt. Just north in Orange County the Eastern/Foothill toll roads have seen some success, but the sister San Joaquin Hills Toll Road is struggling and has had to be refinanced multiple times.


The Eastern/Foothill toll roads have also had to be refinanced several times (bonds now out till 2053) despite really high tolls.


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## Anderson (Nov 18, 2014)

Just as a thought here, but I think the problem is not the concept of privately financed highways (how many times did Class Is end up in bankruptcy in the 19th century?)...the problem is the "Winner's Curse" (i.e. the high bidder wins, even if that bid was unaffordable). This has been documented in other areas (oil rights are the classic example), but it seems to be rearing its ugly head here.


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## CHamilton (Nov 19, 2014)

Part 2 of the series.

How Macquarie Makes Money By Losing Money on Toll Roads

Why does this remind me of Crédit Mobilier?


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## CHamilton (Nov 20, 2014)

Part 3.

The Great Traffic Projection Swindle


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