TORONTO TOLLWAY 407 DEAL EVALUATED

Ontario, Canada, nearly doubled its money by building the 69-km central segment of Toronto's Highway 407 Express Toll Route itself and selling the heavily used congestion reliever 18 months later to a private builder-operator. Though still in dispute by key officials at the Ministry of Transportation, most observers say Ontario's Conservative government also made the right choice by bundling private financing of 39 km of highway extensions with the 99-year lease for 407 Central. The private developers assumed the full traffic and construction risk on the extensions under a tight schedule that requires completion of the 24-km western leg by July 31, 2001, and the 15-km extension into Toronto's eastern suburbs by December 31, 2001. They must also upgrade and expand the world's first open-road tolling system. Delays carry substantial penalties payable to the province, which can terminate the entire 99-year concession if the private builders do not complete the extensions. Meanwhile, the new owners are moving now to reduce operating costs.

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  • Corporate Authors:

    Public Works Financing

    147 Elmer Street
    Westfield, NJ  United States  07090-2433
  • Publication Date: 1999-11

Language

  • English

Media Info

  • Pagination: p. 28-30
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00781694
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jan 14 2000 12:00AM