WASHINGTON—The
Chairmen of the House Committee on Transportation and Infrastructure
and the Subcommittee on Highways and Transit are warning states against
rushing into public-private partnerships involving national highways.
In a letter sent to governors, state legislators, and state
transportation officials on Friday, Committee Chairman James L.
Oberstar (Minn.) and Subcommittee Chairman Peter A. DeFazio (Ore.) said
many such arrangements, also called PPPs, do not protect the public
interest.
“Although
we invite all financing options to be on the table as we evaluate
opportunities to increase investment in our nation’s infrastructure, we
strongly caution you against rushing into PPPs that do not fully
protect the public interest, the integrity of the national system, and
which do not constitute a sustainable national system of transportation
financing,” the Chairmen wrote.
The letter expressed strong concerns over states and local authorities leasing toll facilities to private operators.
“These
deals make good business sense to the companies that are investing in
the projects, but we have serious concerns about whether these
transactions offer a net balance of benefits for the American public,”
it read.
The
letter further cited the Bush Administration’s efforts to promote
highway PPPs, to the point of drafting model legislation for states to
adopt. The Committee is preparing a discussion paper to present its
concerns in more detail and answer the Administration’s claims.
The
Chairmen advised the states that the Committee could take action
against some PPPs in the next surface transportation bill, due in 2009.
“The Committee will work to undo any state PPP agreements that do not
fully protect the public interest and the integrity of the national
system,” the letter read.
