Rendell discusses Pennsylvania Turnpike sale with Peters
Pennsylvania’s Gov. Edward G. Rendell discussed his plan to lease the Pennsylvania Turnpike to a private company with U.S. Transportation Secretary Mary Peters Wednesday.
Peters spent the day in Pennsylvania meeting with Rendell’s administration and leaders of the state Senate and House transportation committees to discuss the role of public private partnerships in solving transportation funding shortfalls.
In a press conference she echoed Rendell’s contention that such a “partnership” could generate billions of dollars for road and bridge repairs.
Rendell contends a lease of the Pennsylvania Turnpike could generate nearly $1 billion a year. The highway currently generates about $600 million annually in tolls.
Last week Rendell hired Morgan Stanley, a company that has been investing in infrastructure, to advise the company “in assembling a financial transaction that could leverage the Turnpike. Morgan Stanley will analyze and explore 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, which has suggested the issuance of bonds, instituting new tolls on other Pennsylvania highways, and creating a $1 “congestion fee” in certain urban areas as a way to raise the necessary funds for infrastructure repair.
* A highly leveraged debt recapitalization of the Turnpike by the Pennsylvania Turnpike Commission or another public entity owned by the commonwealth.
Rendell discusses Pennsylvania Turnpike sale with Peters
