Summary and Status of Concession Agreements (CDA/DB) in Texas

Concession agreements have been utilized across the United States as a way for state departments of transportation and local governments to deliver roadway projects in a fiscal and budgetary environment that has seen less public investment in infrastructure due to revenue shortfalls. The Federal Highway Administration (FHWA) has laid out several reasons that these agencies have increasingly looked to concession agreements as a mechanism for completing roadway projects. These include: (1) The ability to share risk with the private sector; (2) An increase in available upfront financing through funding from a private firm; (3) An increase in the debt that can be taken on with private-sector involvement; and (4) Incentives to better manage a project so time and money are saved in the long run. FHWA describes a variety of compensation methods that concession agreements can employ to compensate the private sector for delivery of the project. These include tolls collected by the private-sector partner, availability payments made by the public sector to the private partner, and shadow (pass-through) toll payments made by the public sector based on vehicle traffic on the roadway. Additionally, where a toll-based concession arises on an existing facility that is producing more revenue than needed to repay debt, payments have been made by the private partner up front based on the future revenues that the private partner anticipates receiving. The Transportation Policy Research Center report Public-Private Investment Models for Roadway Infrastructure provides a more detailed description of these compensation methods. The purpose of this research was to provide policy makers with a comprehensive summary of concession agreements in the state of Texas. This report synopsizes past concession projects in Texas from a financial and operational perspective.

• Record URL:
  http://tti.tamu.edu/documents/PRC-16-54-F.pdf
• Record URL:
  https://static.tti.tamu.edu/tti.tamu.edu/documents/PRC-16-54-F.pdf
• 
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/32708
• Corporate Authors:

  Texas A&M Transportation Institute

  Texas A&M University System
  3135 TAMU
  College Station, TX  United States  77843-3135
• Authors:
  • Glover, Brianne
  • Steadman, Max
  • Dell, Brian
• Publication Date: 2016-6

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Final Report
• Features: Figures; Maps; References; Tables;
• Pagination: 40p

Subject/Index Terms

• TRT Terms: Financing; Payment; Project management; Public private partnerships; Tolls
• Geographic Terms: Texas
• Subject Areas: Administration and Management; Finance; Highways;

Filing Info

• Accession Number: 01608533
• Record Type: Publication
• Contract Numbers: PRC 16-54 F
• Files: NTL, TRIS
• Created Date: Aug 29 2016 11:10AM