Citigroup wins PA turnpike auction
We've noted that private equity firms were gung-ho to get into infrastructure projects. The latest sign: Citi Infrastructure Investors and two partners--Abertis Infraestructuras and Criteria CaixaCorp, both of Spain--offered $12.8 billion for the rights to lease the Pennsylvania state turnpike for 75 years, Gov. Ed Rendell announced. The state sought such a deal, which will require the private equity entity to operate and maintain 500 miles of highway, to raise funds. Other bidders included Goldman Sachs and the Macquarie Infrastructure Group of Australia, a big global player in this arena, notes the AP. We'll undoubtedly see a lot more deals of this nature. Kohlberg Kravis Roberts reportedly has raised a $10 billion infrastructure fund.
For more:
-here's the AP article
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Comments
By Jeff | Posted 9:35pm | May 21, 2008
$12 Billion to run the PA turnpike for 75 years. Great way to reinforce the bureaucratic machine. More government jobs, more obligations for the tax payer less accountability and less voter input.
The next trillion dollar industry for Wall Street? What is the purpose of allowing the government to achieve this level of funding through creative financing? Some new paper to sell overseas? Does anyone believe in pay as you go anymore? How about using today’s money for today’s projects.
I wish the voters could pass a budget at 50% of current funding together while limiting the bonding capability at the federal, state, county and municipal levels and let our government decide what is most important to do. Jobs will be lost and services will be cut but we will get more per dollar of taxes. It is time for the citizens to take responsibility for their lives and stop expecting the government to get involved in trying to resolve all of our problems. It is time for the citizens to stop allowing the government to assume they can solve all of our problems by creating more and bigger programs that never go away even after they have proven useless, in efficient or no longer beneficial.