Cintra signs contract for Trans-Texas Corridor; investment of 1.3 bln usd UPDATE

Forbes ^ | June 30, 2006 | AFX News Limited

[Tolerance Sucks Rocks]

UPDATE with environment report, financing details, tariffs structure

MADRID (AFX) - A consortium led by Cintra Concesiones Infraestructuras SA said it has signed its first contract to build a section of the Trans-Texas Corridor toll road project in the US and will invest 1.3 bln usd.

In a statement, Cintra said the 50-year concession is to design, construct and operate segments 5 and 6 of the SH 130 motorway between Austin and Seguin.

The consortium is 65 pct controlled by Cintra and 35 pct by local constructor Zachry.

Cintra announced the contract in Dec 2004, and said it expected to develop 6 bln usd of motorway projects over the next five years as part of the project.

The final approval of the contract is subject to environmental approval which may come within 6-8 months, Cintra said.

Financing for the project is yet to be finalized though the constructor is expecting to pay with 20-30 pct of its own funds and 70-80 pct debt.

Cintra added that the tariff scheme for the motorway will be 0.125 usd/mile for light vehicles and 0.50 usd/mile for heavy vehicles in 2006, and will be increased in-line with Texas' GDP per capita each year.

[Tolerance Sucks Rocks]

Cintra signs contract for Trans-Texas toll road, to invest 1.3 bln usd (earlier article)

State reaches $1.3 billion deal to finish toll road

Texas 130 toll road to get private boost

State Reaches Deal To Finish Toll Road

[Tolerance Sucks Rocks]

Trans-Texas Corridor PING!

From the mysanantonio.com article (San Antonio Express-News):

Cintra-Zachry signed a contract last year to develop plans for the Trans Texas Corridor route paralleling I-35, and concession agreements from that are expected to follow.

Texas 130 could fold into the corridor, but that decision is at least a couple of years away.

[deport]

Get 'R Done

Arch contracts the first concession of a freeway of toll in the project Trans-Texas Corridor, in the United States

29/06/2006 - The project represents an approximated investment of 1,300 million USD in its phase of construction and the term of concession will extend during 50 years

Segments 5 and 6 of freeway SH130, with a length of 40 miles (64 km), are an alternative to the IH35, highly congested, between San Antonio and the north of Austin

Coherent operation with strategy of Arch: yield, concession long play, majority participation and important investment in the developed economy more of the world

Arch continues its collaboration as strategic partner during fifty years for the design and planning of 1,300 km of Trans-Texas Corridor

With this project, Arch would participate in the management of 23 freeways of toll (3 in process of definitive awarding) in Europe, North America and Chile; in addition, it leads the national market of parkings with the management of more than 240,000 seats

Madrid, 29 of June of 2006. Arch, concessionary company of toll freeways and parkings, first concession in the project Trans-Texas Corridor has been able to materialize his, when reaching an agreement after the design, construction and operation of Segments 5 and 6 (64 km in length) of the freeway of toll SH130 (The State Highway 130) between the localities of Austin and Seguin. The investment anticipated in the phase of construction is approximately of 1,300 million USD (approx 1,080 million euros) and the term of concession will extend during 50 years from the conclusion of construction sites, considered in 5 years.

Arch, with a 65% leads the partnership that will develop the project, next to second greater local constructor Zachry (35%). The beginning of the construction is predicted for 2007 principles after the fulfillment of diverse proceedings, in individual the obtaining of environmental permissions at the moment in transaction. The construction sites of the freeway will be made to 50% by Ferrovial Agromán (filial constructor of Ferrovial) and Zachry.

The new freeway will represent an alternative the IH35 (Interstate Highway 35) between San Antonio and the north of Austin and will allow to encircle highly congested central zone of Austin to the means trips and long-haul. The new one via of high capacity will absorb the increases of traffic of long-haul of predicted heavy vehicles, as a result of the development in the commercial agreements between the Central American United States, Mexico and countries.

The operation is coherent with the strategic targets of Arch for the expansion of its business: one is an investment of significant amount, in the developed economy more of the world, in a long term concession (50 years) and showing a participation of control in the concessionary society.

The TIR considered for the shareholder is of approximately 12%. In addition, the freeway counts on an attractive tarifario scheme. The tariffs have paid attention to $0,125 by mile for light vehicles and $0.50 by mile for the heavy ones (year 2006) and will be updated according to the growth of Producto Interior Bruto (PIB) nominal per capita of the State of Texas.

It is present at in the United States: Texas, Chicago and Indiana
In March of 2005, a partnership led by Arch (85%) and Zachry (15%) signed with the State of Texas the contract for the development, during next the fifty years, of project TTC-35 High Priority Trans Texas Corridor. Of this form, both companies became partners strategic of the Department of Transport of the State of Texas (TxDOT) to design and to plan the development of the greater infrastructure plan promoted in the United States, with an investment of between 29,000 million USD and 36,700 million USD.

In its initial supply to the TxDOT, Arch proposed in addition the direct development to five projects (toll freeways), by an approximated value of 6,000 million USD. Under the terms of the contract, one of these five projects only with the previous agreement between the partnership and TxDOT will be able to be negotiated each. Segments 5 and 6 of the SH130 become the first project thus.

In the United States also, Arch leads the partnership that manages from January of 2005 and by a period of 99 years the Freeway Chicago Skyway (1,830 million USD) and today same the transference of Indiana Toll Road has taken place (3,800 million USD), that Arch will manage with a period of concession of 75 years.

Arch, one of the main deprived infrastructure promoters of transport in the world
Arch, concessionary branch of Ferrovial, is one of the main deprived infrastructure promoters of transport in the world, with an investment it jeopardize in the capital of the concessionaires superior to the 2,000 million euros. Arch operates more than 2,000 kilometers of freeways with a total managed investment superior to 15,000 million euros.

With this project, Arch would happen to participate in concessionary societies that manage a total of 23 freeways in Spain (9), Ireland (2), Italy (1), Greece (1), Portugal (2), Chile (4), Canada (1) and the United States (3). At the present time, three of their projects of concession (Italy, Greece and a freeway in Ireland) are in process of definitive awarding.

In the area of parkings, Arch leads the national market with the management of more than 240,000 seats.

---

Arch initiates the operation of the Freeway of Indiana (the U.S.A.), that will manage during 75 years

[Dallas59]

Didn't they start this thing 50 years ago( or try) with the Pan American Freeway?

[Dallas59]

[ckilmer]

please God kill this deal. every man jack invested in this plan participates in the heartless murder of the USA, the last best hope of humanity.

the men who plan and build this highway to hell must be stopped cold.

[COEXERJ145]

You should stop reading that nutcase Corsi.

Then you might not appeared to be totally uninformed.

[Diddle E. Squat]

please God kill this deal. every man jack invested in this plan participates in the heartless murder of the USA, the last best hope of humanity. the men who plan and build this highway to hell must be stopped cold.

What kind of drugs are you taking? Slap yourself and get a grip.

This is about the TX130 road, which was planned before the Trans-Texas corridor. It simply will let people going to San Antonio, Corpus, and Mexico bypass Austin to the east and then get on I-10 at Seguin to come into San Antonio. The Trans-Texas Corridor will probably simply use this road, but nothing has been decided yet and it is an independent project.

[BnBlFlag]

And the people of Texas has no say whatsoever to this travesty. I also don't recall any authorization by the Legislature.
"Hate Crimes" Perry can forget my vote.

[Dog Gone]

A pavement running to our border.

To hear the likes of you and your friends, this is the end of America.

It might shock you to learn that we have had pavement running to the border for a very long time. Ever since pavement was invented, in fact.

This is just a new piece of pavement, bigger than most, but designed to meet future needs. Its construction will not require you to speak spanish or Canadian, eh?, and doesn't merge Canada and Mexico into our country.

"Highway to hell." How much more hysterical can you get?

Don't renew your membership in whatever organization is fueling your paranoid fantasies.

[nicko]

he's thinking of AC/DC's Highway to Hell...see Amazon.Com

http://www.amazon.com/gp/product/B000002JS8/002-9240715-0279208?v=glance&n=5174

[deport]

please God kill this deal. every man jack invested in this plan participates in the heartless murder of the USA, the last best hope of humanity.

the men who plan and build this highway to hell must be stopped cold.

---

What in the hell do you have against Texas building a road from Seguin on I-10 east of San Antonio and I-35 north to I-35 above Austin?... That's what this project is. Obviously you've never been in the traffic congestion this section of the state has.

[deport]

I also don't recall any authorization by the Legislature.

---

Maybe you should check out the 77th Legislative actions... check on Regional Mobility Authorities, Texas Mobility Fund, Central Texas Turnpike System and I think I remember a Constitutional amendment some years back prior to the legislature being able to act.

[BJClinton]

please God kill this deal. every man jack invested in this plan participates in the heartless murder of the USA, the last best hope of humanity.

the men who plan and build this highway to hell must be stopped cold.

[Tolerance Sucks Rocks]

That rhetoric's a bit hyperbolic, isn't it?

[Tolerance Sucks Rocks]

Too bad Texas 45 SE won't be done for awhile. An envirowhacko lawsuit is holding it up.

[Tolerance Sucks Rocks]

Did you use Babelfish on that? That reminds me of this poorly written English version of a German magazine article about FreeRepublic poll freeping, in which I read such phrases as "going partly violently to the thing", "completely concretely", and "tilting the tuning." There were some other howlers in there as well.

[deport]

Did you use Babelfish on that?

---

No I used their option of translation or maybe it was google's. Their web site is in Spanish and one of the options from a google search is for an English translation of Cintra's web site.

[Dog Gone]

LOL!

[hershey]

Here it comes, like it or not. Bigger than Boston's Big Dig, and just think how it will ease the pesky problem of sneaking into the US! But this means we'll have to fix Mexico's educational system since so many illegals are unskilled and illiterate. (No sarcastic remarks about the US school system, please.) And we'll have to fix their roads, too. This is already being bandied about on TV.

[COEXERJ145]

Do you actually know anything about this or are you just parroting the crap we see posted here by that moron Corsi?

[texastoo]

Isn't the state of Texas supposed to use bids for contracts?

[deport]

Isn't the state of Texas supposed to use bids for contracts?

---

Did they not use bids?

[rimtop56]

1) We shouldn't have to pay to use a highway.

2) It's a regressive tax.

3) It's a blood-sucking tax that will never, ever go away.

4) Maybe they have toll roads up north, but that doesn't mean we need or want them here.

5) I'm seriously considering not voting for Perry because of his forcing it down our throats.

6) Normal highways have worked for all this time. Toll-roads are horrible ideas.

[texastoo]

Did they not use bids?

Not that I know of. It also looks like the Texas taxpayer will have to subsidize this company. Free Trade ain't FREE!!!!!!!

[RoadTest]

"please God kill this deal. every man jack invested in this plan participates in the heartless murder of the USA, the last best hope of humanity.

the men who plan and build this highway to hell must be stopped cold."

I agree 100%. When they built the Interstates through the American cities, the cities died. Nobody stopped there any more,but went right on through. They also enabled people to move to the suburbs and still work in the abandoned cities, while the factories were still there. They're gone now, too, along with the tax base.

This highway is to destroy the United States. You think the influx of illegal people and substances is bad now?

[texastoo]

I love the way "free trade agreements" talk about transparency. What a joke.

[deport]

Not that I know of.

---

I don't know of it either.... But I bet they followed the state law as there are too many watch dog groups and those opposed to these tollways out there for something this big to go unnoticed.

How is the taxpayer subsidizing this when the money for contruction is being put up by Cintra/Zachary?

[ckilmer]

BJClinton
You are properly named

[texastoo]

"How is the taxpayer subsidizing this when the money for construction is being put up by Cintra/Zachary?"

Go here: On page 3 of 3 is a paragraph explaining the taxpayer will subsidize the company. The paragraph starts with "Our team....

http://www.keeptexasmoving.org/pdfs/projects/ttc35/fact%20sheet%20-%20Cintra-Zachry%20-%20031105%20FINAL.pdf

Post this paragraph if you will. I am not computer savy.

[deport]

Do you not expect the taxpayer to pay for some items when the state is involved?.... How about land, how about TXDOT employees salaries, surveryors, Lawyers, equipment, office space, utilites, etc.... Did you think all this was free?

The $1.3 billion Cintra/Zachary will invest in this project to construct some 40 miles of roadway doesn't come from the taxpayers. Even the para you've hung your hat on in several post doesn't even allude to the taxpayer paying for the project but clearly states they will have very little investment.

-----
Our team will get needed roads built more quickly at very little cost to taxpayers and
even expect to return money to the state. Our road projects utilize the latest design and
construction techniques to help assure safety, environmental quality and convenience for
motorists and surrounding communities.
-----

[hedgetrimmer]

New Navy After-action Report Backs Swiftvets
Newsmax.com ^ | Sept. 19, 2004


Posted on 09/19/2004 9:27:08 PM PDT by ArmyBratproud


A never-before-published after-action report obtained from the Naval archives by "Unfit for Command" co-author Jerome Corsi confirms key contradictions cited by the Swiftboat Veterans for Truth about John Kerry's Vietnam battle claims.

---

This will never, ever, ever, EVER reach the MSM.

If a reporter even DARED to write this up it would be spiked in a heartbeat and the reporter or producer would be fired on spot.

Welcome to Pravda er the MSM.
13 posted on 09/19/2004 9:41:06 PM PDT by BoBToMatoE

---

To: BoBToMatoE
That is why we need to make sure that Rush, Hannity, and everyone else who will run the story, hears about it.

16 posted on 09/19/2004 9:42:48 PM PDT by COEXERJ145 (Hannity Was Right, FReepers Tend To Eat Their Own)

---

Yes, we need to make sure Rush, Hannity and everyone else hears about the 'nutcase'.

[ckilmer]

no. not in the least. its an accurate description of any highway system that facilitates the flow illegals and illegal contraband from south of the border.

And since CAFTA has been signed the flow is going to expand.

[ckilmer]

I trust that at minimum, you are Turtle Bay internationalist.

[ckilmer]

This is about the TX130 road, which was planned before the Trans-Texas corridor. It simply will let people going to San Antonio, Corpus, and Mexico bypass Austin to the east and then get on I-10 at Seguin to come into San Antonio. The Trans-Texas Corridor will probably simply use this road, but nothing has been decided yet and it is an independent project.
////////////////
man you have dead hand. the frightening thing is that you understand perfectly how the internationalists want this stuff to play out. likely you may even know that there is no upside for the USA in the TT corridor.

why flak for the internationalists. even the natural resources game is going to change radically in the next couple years.

[texastoo]

"Do you not expect the taxpayer to pay for some items when the state is involved?.... How about land, how about TXDOT employees salaries, surveryors, Lawyers, equipment, office space, utilites, etc.... Did you think all this was free?"


Those people are on the job with or without the Trans/Texas Corridor. We are already paying their salaries and have been for many years.

This is what the Texas Farm Bureau has to say about this.

March 18 , 2005
Trans Texas Corridor:

snip....

In May 2004, Transportation Commissioner Ric Williamson, Governor Perry's point man on the Trans Texas Corridor, said, "It's either toll roads, slow roads or no roads." But Bell County Commissioner Richard Cortese doesn't believe for a minute that Cintra will be able to recover its $7.2 billion for construction without some help from taxpayers. According to Cortese, the deal they have with the State of Texas calls for "shadow tolling."

"In other words, they will toll cars that don't actually exist and the state will subsidize Cintra until it makes a profit," he explains.

Citing Section 370.172 (d), which states, "Tolls, fees, fares, or other usage charges are not subject to supervision or regulation by any agency of this state or another governmental entity," Cedric Popp, a Wharton County farmer and Farm Bureau member, wonders who is actually in charge.

snip....

Cintra, the Spanish company tapped to build Trans Texas Corridor 35 from Dallas to San Antonio, has a reputation for aggressive collection tactics and frequently raising tolls without public input, according to charges lodged by many Canadians.

http://www.txfb.org/TexasAgriculture/2005/031805/031805TTCpart3.htm

If they are going to charge taxpayers, these should be state or federal roads,.




train wreck for agriculture?
It depends on who you ask!

[texastoo]

"Do you not expect the taxpayer to pay for some items when the state is involved?.... How about land, how about TXDOT employees salaries, surveryors, Lawyers, equipment, office space, utilites, etc.... Did you think all this was free?"


Those people are on the job with or without the Trans/Texas Corridor. We are already paying their salaries and have been for many years.

This is what the Texas Farm Bureau has to say about this.

March 18 , 2005
Trans Texas Corridor:

snip....

In May 2004, Transportation Commissioner Ric Williamson, Governor Perry's point man on the Trans Texas Corridor, said, "It's either toll roads, slow roads or no roads." But Bell County Commissioner Richard Cortese doesn't believe for a minute that Cintra will be able to recover its $7.2 billion for construction without some help from taxpayers. According to Cortese, the deal they have with the State of Texas calls for "shadow tolling."

"In other words, they will toll cars that don't actually exist and the state will subsidize Cintra until it makes a profit," he explains.

Citing Section 370.172 (d), which states, "Tolls, fees, fares, or other usage charges are not subject to supervision or regulation by any agency of this state or another governmental entity," Cedric Popp, a Wharton County farmer and Farm Bureau member, wonders who is actually in charge.

snip....

Cintra, the Spanish company tapped to build Trans Texas Corridor 35 from Dallas to San Antonio, has a reputation for aggressive collection tactics and frequently raising tolls without public input, according to charges lodged by many Canadians.

http://www.txfb.org/TexasAgriculture/2005/031805/031805TTCpart3.htm

If they are going to charge taxpayers, these should be state or federal roads,.




train wreck for agriculture?
It depends on who you ask!

[texastoo]

Sorry for the double post.

[Tolerance Sucks Rocks]

I found the article I mentioned to you earlier, from Der Spiegel, and the Germans had nothing to do with the funny phrases. It, too, was a Google translation:

You need tons click "co-ordinating" (Free Republic - The conservative click Guerilla)

[nygoose]

Why the foreign builder?

[Diddle E. Squat]

Here's the paragraph you claim as proof that the taxpayers will subsidize the toll road company:

Our team will get needed roads built more quickly at very little cost to taxpayers and even expect to return money to the state. Our road projects utilize the latest design and construction techniques to help assure safety, environmental quality and convenience for motorists and surrounding communities.

So if the state pays $1 and the tollway company pays the other $99 of the construction costs the state is subsidizing the tollway company? Because that is the approximate ratio (actually smaller) of the total costs of the Trans-Texas Corridor (not the TX130 project that is the subject of this article) that the state and Cintra will pay on the TTC. A few million paid for by the state for studies, $6 billion land and construction costs paid by Cintra, plus Cintra will pay the state $1.2 billion a concession fee (which the state will use for connecting roads and the leftover to anything else on TXDOT's list anywhere in the state.) The tradeoff is Cintra gets a 50-year operation and maintenance concession to collect tolls, but the land and facility is owned by the state.

Basic math says that in no way is a subsidy from the state. Quite the opposite.

[Diddle E. Squat]

Have you posted how wonderful Corsi is over at Democrat Underground, or do you leave that out of your DU posts?

[Diddle E. Squat]

Quit smoking tinfoil dope.

This road only connects Seguin to Georgetown. The TTC when first built in about 10 years will only connect DFW to San Antonio. The stretch to Laredo isn't scheduled to be built until around 2025.

BTW, if this is about aiding illegal alien smugglers and all sort of nefarious characters, why would they take this upcoming toll road, with cameras at every tollbooth, when the roads that exist now don't have those? Wouldn't they prefer to evade the cameras and booth operators?

[Diddle E. Squat]

Actually the state does have accountability over Cintra, because the contract allows for the state to cancel the agreement at any time for any reason. Of course in that case they'd have to buyout based on a pre-determined formula that is basically the remaining costs from construction that haven't yet been repaid from the tolls.

[Diddle E. Squat]

Why the foreign builder?

Probably because they submitted the highest bid. Cintra is Spanish, but their partner Zachry is US, based in San Antonio.

[Diddle E. Squat]

1) You don't have to pay to use the highway, there are plenty of free choices that already (and will continue to) exist.

2) No it isn't, it is a choice cost. The only people who pay are those who choose to use it.

3) If enough public sentiment is there, it can be ended by the state cancelling the contract and making it free. But depending on the timing that might take a lot of tax dollars to pay off the remaining construction debts. New roads have costs, this is just letting a private firm pay for it then recoup the costs through tolls, rather than the traditional way of using taxes to pay for construction.

4) Texas voters passed a constitutional amendment several years ago that authorized the state to use toll financing to build roads.

5 & 6) Please actually do some research (beyond simply visiting an anti-toll propaganda website) into the actual finances of TXDOT. The current gas tax barely keeps up with maintenance now. Yes, 1/3rd of it should NOT be diverted to education (like it is currently) but even with that added back the state would be far short of the funds required to pay for the needed roads. The amount of tax per gallon hasn't changed in years, but inflation has raised costs. In fact steel and concrete prices have risen much faster than inflation the last 2 years. Toll financing is a way to get the private sector to pay for roads and get them built years faster than traditional financing, because it increases the amount of funds available and to borrow against without raising taxes.

Texas is adding about 400,000 new residents a year. Meaning every 3.5 years we add another Austin. That requires a heck of a lot of new roads. Without toll financing we'll fall further behind in building them, unless we raise taxes.

No current roads will be tolled, just some new roads and some new construction along existing roads. Only those who choose to use it will pay, unlike the current method where everyone is taxed without a choice. Why do some conservatives call for the efficiency and reduced amount of government via privatization except for roads? Is it that they are actually only conservative when it doesn't affect their personal middle-class welfare?

[ckilmer]

doesn't sound to me like you've actually disagreed with me.

I hope at least you're being paid to post.

[1rudeboy]

The consortium is 65 pct controlled by Cintra and 35 pct by local constructor Zachry.

[texastoo]

Houston has 2 separate toll roads. Did the taxpayers subsidize it? If so, could you give me a link?

at very little cost to taxpayers.

Sounds somewhat Clintonesque to me. It dedpends on what the word is, or what the word little means.