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Citigroup-Albertis wins right to lease Pennsylvania Turnpike

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southern_belle Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 03:54 PM
Original message
Citigroup-Albertis wins right to lease Pennsylvania Turnpike
A group led by Citigroup and Spanish toll road operator Abertis Infraestructuras SA won the right Monday to lease the Pennsylvania Turnpike, with a bid of about $12.8 billion.

Gov. Ed Rendell has been advocating leasing the turnpike as a means of funding mass transit and much-needed bridge and road repairs in the state.

Rendell has touted the lease as an alternative to Act 44, legislation he signed 10 months ago that includes converting Interstate 80 into a toll road. The federal government has not approved the introduction of that toll, which has garnered strong opposition.

The lease would run for 75 years, and the $12.8 billion bid is for the life of the agreement.

"Seems like a slam dunk," Rendell said of the lease agreement.


More at http://pittsburgh.bizjournals.com/pittsburgh/stories/2008/05/19/daily5.html?surround=lfn
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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:12 PM
Response to Original message
1. The Article goes on and says the Legislature has to agree
Edited on Thu May-22-08 04:15 PM by happyslug
And the General Assembly (Lets go by its proper name in Pennsylvania for the State Legislature) will not. When this was first offered the General Assembly refused to lease the Turnpike and then the General Assembly passed Act 44 instead. Tolling I-80 is why more popular than leasing the Turnpike. The opposite may be true in the Northern Counties, where I-80 runs through, but in the rest of the state this is dead on arrival.

The Turnpike is the #1 source of patronage jobs for the State Assembly, do you think the General Assembly is going to agree? That is why the General Assembly passed Act 44, to keep those jobs safe.
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northzax Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:14 PM
Response to Original message
2. hmmm, 170 million a year
the turnpike generated $576m in 2005, according to the Turnpike Authority. subract fare collection costs of $54 million (I assume this is salaries, ticketing, technology, administration and the like) and yearly maintenance of $51m, this seems an odd deal. the pike generates a profit, why sell it off?
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Vincardog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:18 PM
Response to Reply #2
3. Why sell it? Because that is the plan. Privatize all profits and externalize all costs.
The fucking Mega parasitic corporations want everything of value and we are supposed to be left fighting over the crumbs.
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northzax Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:32 PM
Response to Reply #3
6. I haven't read the plan, I confess
and in a lot of cases (I know, I am a heretic) public-private partnerships can be cost effective and efficient. but I don't see it obviously in this one. I must read further.
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Vincardog Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:51 PM
Response to Reply #6
7. The plan is being implemented by jr and his mega rich friends to privatize the roads
make every inter city trip a toll. Check up the Trans Texas Corridor and the plan to form a North American Union uniting the US Canada and Mexico. The current step is to drive the

US dollar to the value of dirt so they can introduce the Amero common currency.
They will probably introduce a duel currency system.
The stable Amero will be for use by the parasitic corporations in the international markets and the old US dollar will be what we will be paid in and will be essentially worthless.

Welcome to another busHITLER business success.
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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:23 PM
Response to Reply #2
4. I hate to say it, but Randell was elected by the financial powers in the state.
The financial powers wanted legalized gambling, so the GOP refused to even fund Fisher (Who had been Randall's first opponent for the office of Governor) in the last weeks of the Campaign. All you heard on the air was Randall's ads, none for Fisher, for Fisher had no money. Why no money? Fisher opposed opening up legalized gambling in Pennsylvania. Randall promised such gambling and the GOP financial Leadership wanted it, but knew most GOP voters did not, so they just did NOT finance the GOP candidate that year.

Randall is indebted to those financial elites, and he is trying to pay them back (The Gambling law was just the first installment). Except for his financial acts (including Taxation) I like Randall and voted for him twice, but I understood his weaknesses and accepted them. Hopefully the Democrats in the General Assembly (and enough GOP members) come to their senses and stop this. Tolling I-80 is by far a better option then leasing out the Turnpike, and the opposition to Tolling I-80 is mostly GOP (The areas are strong GOP areas around I-80).
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Doctor_J Donating Member (1000+ posts) Send PM | Profile | Ignore Thu May-22-08 04:25 PM
Response to Original message
5. Yup, and they will be answerable not to the people who use the road,
but to the stockholders. Take a good look at our health care system, because that's what EVERYTHING is going to be like in 5 years - roads, drinking water, parks, schools, etc.
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