Long-Term Lease Concessions

Long term highway lease transactions can be grouped into three types.

Debt transfer lease transactions

A fee paid by the private concessionaire is used to defease the underlying publicly held debt on the toll facility, with no additional funds available to the public sponsor. Such transactions require the private concessionaire to maintain the road to specified standards throughout the concession period and may also require the private investors to make additional capital repairs to address safety and condition issues.

Hybrid debt transfer and new construction lease

the private investor pays a fee that is used to defease the underlying publicly—held debt on the facility and completes new center—line construction extending the existing toll facility. With this model, additional payments in excess of the debt underlying the existing road are not made. In some cases, new construction may only be required at a future point in time if certain predetermined performance levels are achieved.

Value extraction lease transactions

A fee paid by the private investor is used to defease any underlying public debt associated with the toll road and provide the public sponsor leasing the facility with a sizeable payment, which it can use for other needs. These transactions require the private investor to maintain the road to specified standards throughout the concession period and may also require it to make additional capital repairs to address safety and condition issues.

Projects

Long-Term Lease Concessions:

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