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Project Profile: Indiana Toll Road

Indiana Toll Road

photo credit: Gray Television Inc.


Northern Indiana

Project Sponsor / Borrower

Indiana Finance Authority (IFA), on behalf of Indiana DOT

Program Areas

Public Private PartnershipsTolling and PricingValue Capture

Value Capture Techniques Asset Recycling

Toll Road


In operation since 1956, the Indiana Toll Road (ITR) stretches 157 miles across the northernmost part of Indiana from its border with Ohio to the Illinois state line, where it provides the primary connection to the Chicago Skyway and downtown Chicago. The Indiana Toll Road links the largest cities on the Great Lakes with the Eastern Seaboard. Connections with I-65 and I-69 lead to major destinations in the South and on the Gulf Coast.

After his election in 2004, Governor Mitch Daniels tasked the Indiana Finance Authority (IFA) with the responsibility of exploring the feasibility of leasing the ITR to a private entity. IFA engaged Wilbur Smith to prepare a revenue analysis and Goldman Sachs to provide financial advice. These assessments led to IFA's release of a Request for Toll Road Concessionaire Proposals on September 28, 2005. Four teams submitted proposals by the October 26 deadline. The lease concession was awarded to Indiana Toll Road Concession Company, LLC (ITRCC) comprising an even partnership between Cintra of Spain and Macquarie of Australia. ITRCC submitted the highest bid of $3.8 billion.

The ITR lease transaction was contingent upon authorizing legislation known as "Major Moves," which was signed into law in late March 2006. On April 12, 2006, ITRCC and IFA executed the "Indiana Toll Road Concession and Lease Agreement" providing for a 75-year lease of the ITR. ITRCC formally assumed operational responsibility for the ITR on June 29, 2006.

As part of the concession, ITRCC pledged to spend $200 million on capital improvements to the facility during the first three years of the lease and approximately $4.4 billion over the life of the concession. By leasing the facility, the state was able to retire $225 million in debt. It allocated the remainder of the lease proceeds to several funds used solely to pay for infrastructure projects throughout the state.

In March 2015 IFA awarded a new $5.725 billion, 66-year lease concession to IFM Investors following the 2014 bankruptcy of ITRCC. Nearly all of the sale funds will be used to pay back creditors holding ITRCC's debt. IFM has plans to invest $260 million in capital improvements over the first five years of the concession to address deteriorating pavement, bridges, and travel plazas.


$3.8 billion (original 75-year lease)

$5.725 billion (current 66-year lease)

Funding Sources

Original lease

  • Cintra Equity - $374 million
  • Macquarie Equity - $374 million
  • Senior bank debt - $3,030 million (backed by toll receipts)
Revenue Sources


Project Delivery / Contract Method

Not applicable

Private Partner

Original equity partners - Statewide Mobility Partners Consortium - Cintra Concesiones de Infraestructuras de Transporte, S.A. (50%) and Macquarie Infrastructure Group/Macquarie Infrastructure Partners (50%)

Current equity partners - IFM Investors, owned by 30 Australian and American pension funds, including the California State Teachers' Retirement System, New York City Employee Retirement System, and the Illinois State Board of Investment

Project Advisors

Goldman Sachs

Wilbur Smith


7-bank club (senior bank debt, original lease)

  • Banco Bilbao Vizcaya Argentaria SA
  • Banco Santander Central Hispano SA
  • Caja de Ahorros y Monte de Piedad de Madrid
  • BNP Paribas
  • DEPFA Bank
  • RBS Securities Corporation
  • Dexia Crédit Local
Duration / Status

75-year lease commenced June 29, 2006

ITRCC bankruptcy filed September 2014

Ownership transfer to IFM Investors on May 27, 2015

Financial Status

Financial close June 29, 2006

  • First long term lease by a state of an existing public toll road in the United States.
  • The concession agreement establishes toll rates and possible increases and places limits on the return on investment for the concessionaire.
  • The new concessionaire must adhere to the performance standards set out in the 2006 concession agreement.
Related Links / Articles

Indiana Toll Road Official Site

Indiana Finance Authority - ITR Lease

Indiana Supreme Court Opinion to legal challenges to the long term lease

Indiana Policy Review by the Reason Foundation: Bottom-Line on Indiana Toll Road Deal


Not Available

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