Former Gov. Mitch Daniels' Newsroom

Contact: Jane Jankowski
Phone: 317/232-1622

For Immediate Release: Jan 23, 2006
State receives bid of $3.85 billion to lease Indiana Toll Road

Editor?s note: Links to various documents are at the end of the release

INDIANAPOLIS (January 23, 2006) ? Governor Mitch Daniels announced today that the state?s longstanding transportation shortfall has been closed, and funding for Indiana?s transportation future is assured for years to come.

Statewide Mobility Partners (Macquarie/Cintra) offered a bid of $3.85 billion to lease the Indiana Toll Road from the state for the next 75 years. The bid is the result of the governor?s Major Moves plan that seeks to utilize public-private partnerships to invest in Indiana?s infrastructure to create jobs and economic development for the state.

The $3.85 billion would fully fund transportation construction needs for the next 10 years for the first time in the state?s history. The bid was one of four submitted on January 20.

Transportation projects that will be completed with Major Moves include the Hoosier Heartland Highway, Fort to Port (connecting Indiana to the ports of Toledo), two Ohio River bridges near Louisville, upgrade of U.S. 31, I-69 between Evansville and Indianapolis, modernization of the Indiana Toll Road corridor and more than 200 other transportation projects.

The governor is seeking to proceed with public-private partnerships, such as the one with Macquarie-Cintra, through legislation currently before the Indiana General Assembly. Rep. Randy Borror, R-Ft. Wayne, is the author of House Bill 1008, which will be heard before the House Ways and Means Committee on Tuesday (January 24).

The state would receive the lease payment as one lump sum and the company would earn the right to collect tolls. In addition, Macquarie-Cintra will make Toll Road capital improvements estimated at more than $4.4 billion over the term of the lease, including more than $200 million in the next three years. Among other components of the agreement, outlined in a 263-page document (link to the agreement may be found at the end of this release), the company will maintain the Toll Road at or above current standards and will make such upgrades as installing electronic tolling and pay $5 million for a new state police post. Macquarie-Cintra also would pay the state for State Police patrol of the road.

According to the Major Moves plan, proceeds of the lease would be used this way:

  • $2.5 billion for the Major Moves Construction Fund. This fund is used for Indiana Department of Transportation projects outlined in the draft 10-year plan, such as Fort to Port and Hoosier Heartland
    • This includes $150 million over the next three years that will be given to local communities for their road and bridge needs. Daniels said beginning this year, $50 million annually will be distributed for three years, based on the current motor vehicle highway fund formula, known as the MVH. No local transportation funds have been distributed for the past 4 years. A county-by-county list, representing one year of funding, is attached.
  • $1.35 billion to Toll Road counties. This represents 34 percent of the proceeds. About one-third of tolls on the road are paid by Hoosier drivers. Included in the total:
    • $875.5 million would be used for state projects in Toll Road counties
    • $225 million to pay off remaining Toll Road bonds
    • $100 million for the Northwest Indiana Regional Development Authority
    • $100 million for local transportation projects

Statewide Mobility Partners (SMP), the Macquarie Infrastructure Group (MIG) of Australia and Cintra Concessiones de Infraestructuras de Transporte, S.A. (Cintra) of Spain, operates more than 30 toll roads on five continents. Among Macquarie-Cintra?s projects are the 7.8-mile Chicago Skyway ($1.83 billion lease in 2004), the Dulles Greenway in Washington, D.C. (13.6 miles, 50-year lease), and the Ruta 5 in Chile (465.7 miles, 25-year lease).

Macquarie was incorporated in 1996 and has 14 offices across the United States. Cintra was formed two years later.

Major Moves will be the single largest investment in Indiana?s future in recent history, creating thousands of construction and related jobs will be created. With new and improved infrastructure, more opportunities will be created across the state with investments in all sectors of the economy.