Indiana Signs $3.8 Bln. Toll-Road Privatization Deal

n the largest privatization of a highway project in U.S. history, Indiana officials signed a $3.8 billion agreement to turn the 157-mile Indiana Toll Road over to a Spanish-Australian group that will operate the road for the next 75 years, the Associated Press reported.

The deal was approved when Gov. Mitch Daniels (R) signed it into law in March. (Click here for previous coverage.)

Under the lease, Cintra-Macquarie would pay the state $3.8 billion up front and be responsible for operating and maintaining the highway, and will keep the toll revenue it collects, AP said.

Opponents of the deal have sued, contending the state’s constitution requires that the proceeds from the sale of any public works be used to pay off state debt, AP reported. The Daniels administration said the arrangement is not a sale but a lease.

The state hopes to close the deal and transfer the highway to the consortium by June 30, AP said.