The End of the Road - unmasking the SH 130 bankruptcy and financial web

Link to article here to view all the graphics and listen to audio of locals affected by the toll road.

The End of the Road
The state had great plans for the southern leg of Texas 130. An 85-mile-an-hour speed limit, no direct, up-front cost to state taxpayers, millions of dollars in toll revenue for the state. What happened?
By Katherine Blunt
San Antonio Express-news
September 16, 2016

When the Texas Department of Transportation signed a deal for the first public-private toll road in the state, it touted the partnership as a win for everybody: The San Antonio-Austin area would get a new section of highway at no upfront cost to Texas taxpayers, private developers would run the operation and profit over time, and the state would own the road and earn millions of dollars in toll revenue.

The deal allowed Cintra, a Spanish infrastructure developer, and San Antonio-based Zachry Construction Corp. to build, operate and maintain the 41-mile southern section of Texas 130 for 50 years as part of a lease agreement with TxDOT. Slicing through farmland between Seguin and Mustang Ridge, south of Austin, the road would become known for its 85-mph speed limit — the highest in the country.

“Over the 50 years, we would receive, it’s estimated, a substantial amount of revenues,” former TxDOT tolling official Phil Russell told the Texas Transportation Commission before it approved the deal in 2006. “It would be worth $245 million (in toll revenue) and a long-term funding source for operation and maintenance.”

Less than a decade later, Cintra and Zachry plan to walk away from the project and hand their bankrupt joint venture, SH 130 Concession Co., to its lenders. The company owes federal taxpayers more than a half-billion dollars and is engaged in a years-long dispute with TxDOT about maintenance and construction problems on the sparsely traveled road. And so far, it has paid the state only about $3 million in toll revenue.

Link to read the full expose' here.

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