Rendell chooses Morgan Stanley to advise on turnpike sale

Rendell chooses Morgan Stanley to advise on turnpike sale    Pennsylvania Gov. Edward Rendell said Thursday he has selected Morgan Stanley & Co. to advise the state on how to generate $1.7 billion required annually to repair and maintain Pennsylvania’s highways and bridges, and stabilize funding for mass transit.
   In a statement, Rendell’s office said the investment-banking house would make a detailed analysis and offer recommendations concerning options such as:
   * A lease or concession of the Pennsylvania Turnpike to a private operator.
   * New revenue generating activity advocated by the Pennsylvania Turnpike Commission, including issuance of bonds, instituting new tolls on other Pennsylvania highways, and creating a $1 “congestion fee” in certain urban areas.
   * A highly leveraged debt recapitalization of the Turnpike by the Pennsylvania Turnpike Commission or another public entity owned by the Commonwealth.
   “The time for action is now,” Rendell said. ” A reliable road system is absolutely vital to our safety and to Pennsylvania’s future — we cannot wait.”
   Rendell’s office said the terms of the contract, which are subject to the review and approval of the Pennsylvania Attorney General’s Office, provide that Morgan Stanley will earn compensation only when the state receives funding for its transportation needs, “a formula that is standard in these types of transactions.”
   Morgan Stanley has an infrastructure investment fund that competes with funds from firms like Goldman Sachs, Macquarie Bank, and JP Morgan.