|
Date |
ArticleType |
|
3/4/2016 |
Press Release |
Statement Regarding Chapter 11 Filing By SH 130 Concession Company |
|
|
Statement Regarding Chapter 11 Filing By SH 130 Concession Company Public-Private Partnerships Should Remain An Option for Traffic Congestion The following is a statement from Chris Wallace, president of the Texas Association of Business, regarding the move by the SH 130 Concession Company to file for Chapter 11 protection as it restructures its debt. The concession company operates sections of State Highway 130 southeast of Austin under a public-private partnership with the state. The statement is as follows: The unfortunate situation for the concession company demonstrates exactly why public-private partnerships are a smart way to build roads: the private sector bears the risk, and the state benefits financially. In the case of SH 130, no state taxpayer funds were used for its construction, and the state has been paid more than $100 million by the private sector for the roadways lease. Importantly, the state is not responsible for the roadways debt. No financial obligations will be transferred to Texas taxpayers, and the states interest is protected by contract between the concession company and the Texas Department of Transportation. The fact that the SH 130 Concession Company is restructuring isnt cause for celebration. But the reorganization demonstrates the value of risk being effectively transferred to the private sector in a public-private partnership, shielding taxpayers from project financial underperformance. Texas has no better friend than industry willing to invest in our state. In this case, investing to create needed new roadways that otherwise may not be possible. # # #
|
|
|