![]() The original P3 was done under Governor Mitch Daniels (R) and the re-sale of the bankrupt private side was handled by Gov. The Cintra-Maquarie joint venture declared bankruptcy in 2014 and was bought for $5.7 billion in 2015 by IFM Investors. The venture did not work out for the original P3 partner, a joint venture of Cintra and Maquarie, which had some bad revenue and debt service assumptions in its business plan (see this Forbes article for details) and which may have overpaid for the toll road in the first place. Whether it works for Indiana in the future depends on how much Indiana might need to build a road competing with the toll road between now and the year 2081 but will be forbidden to do so by the P3 lease agreement, and how well the private operator maintains the toll road. Financially, the agreement has worked as intended (so far) for the State of Indiana – they got their $3.8 billion check, cashed it, and built roads with it. Note: In any two-party transaction, you need to be careful saying “it” didn’t work. Higgins told the WSJ that Trump said “They tried it in Mike’s state and it didn’t work.” Vice President Mike Pence was also in the meeting, and according to the WSJ article, Trump singled out the big P3 in Pence’s home state of Indiana – the lease of the 156-mile Indiana Toll Road to a private venture for 75 years (2006 to 2081) in exchange for $3.8 billion in cash up front, which was used by the Indiana DOT to pay for a 10-year program of building new transportation infrastructure throughout the state. Brian Higgins (D-NY) and Richard Neal (D-MA) gave the quotes and the story to the Wall Street Journal and the Washington Post in separate articles the night of September 26. In a meeting with bipartisan members of the House Ways and Means Committee to discuss tax reform on September 26, Trump apparently said that most “PPPs” are “more trouble than they’re worth.” (Reps. President Trump unexpectedly distanced himself from one of the core principles of his own Administration’s infrastructure plan this week – an increased reliance on public-private partnerships to finance infrastructure. ![]()
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