Texas defies US Government - cancels Cintra procurement in favor of NTTA (BREAKING NEWS)

The long expected abortion was performed today. Cintra's selection as concessionaire for SH121 north of Dallas was cancelled by the Texas Transportation Commission (TTC) in favor of North Texas Tollway Authority (NTTA), despite a clear warning from Federal Highway Administrator Rick Capka that this violates federal procurement law, and subjects the state to sanctions.

The draft contract with the Spain-based international toller was estimated by Texas DOT to be worth $2.87b which could have been used by the region to fund other local roads. NTTA produced a counter-proposal after the event which on its face was worth more.

TTC commissioners said they doubted that the NTTA really offered best value, but felt they had to go along with local opinion in favor of the local public sector toll monopoly.

Chairman Ric Williamson said if SH121 doesn't meet financial projections then area residents will now have to pay higher tolls.

"I have deep concerns about tollpayers of North Texas overpaying for the asset," said Williamson.

Under a private concession the project was to be financed on a standalone basis and Cintra would be constrained to contracted toll rate caps. Under NTTA the area's whole toll road system is pledged to support the debt and toll rates all over Dallas Fort Worth can be increased to support any shortfalls.

Despite this heavy handicap the NTTA managed to gain local support for its late bid - after Cintra had been selected in a competition in which NTTA had initially agreed to stand aside.

Texas ability to raise private equity for tollroads is in serious question if governmental toll agencies can simply wait to see the result of private bidding, then top it, making a mockery of established procurement rules.

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TOLLROADSnews 2007-08-23

This was the afternoon tabloid version of the story. For the more reflective morning broadhseet version see

http://tollroadsnews.com/node/3094

TOLLROADSnews 2007-08-24