Chicago Skyway Indiana Toll Road
Year 2005 2006
Infrastructure 7.8 miles (12.5 km) of toll urban highway with a bridge 156.9 mi (252.5 km) of toll intercity highway connecting the Chicago Skyway to the Ohio Turnpike
Lessor City of Chicago State of Indiana
Lessee Skyway Concession Company Cintra and Macquarie Atlas Roads consortium
Lease duration 99 years 75 years
Amount $1.85 billion $3.85 billion
Examples of Highway Public / Private Partnerships in the United States
Public / Private Partnerships are commonly advocated as a suitable alternative for governments to receive financial compensation in by leasing an infrastructure. The lessee operates the infrastructure and collect tolls. The effectiveness of such projects is contingent upon a number of factors, particularly expected toll revenues and relation to the value of the bid. Private companies bidding for private infrastructure, particularly roads, must thus carefully forecast the traffic potential of the road since the level of traffic will directly be related to toll revenue. In 2006, Cintra, a Spanish construction firm, and Macquarie Atlas Roads, an Australian toll road company, successfully bid for the operation of the Indiana Toll Road. In exchange for a $3.85 billion payment, the consortium was given a 75 years concession to operate the road and collect tolls. However, toll revenues did not reach expectations. The financial crisis of 2008-09 resulted in a significant drop in ridership. By 2010, toll revenues where half of what was expected, but traffic started to increase afterwards, but not to a level that generated enough revenues. In 2014, the consortium filed for bankruptcy.