10/28/05-Delaware transportation officials are considering a partnership with private groups to help with roadwork in the state.
However, details about the proposals from the three consortiums that are vying for the work are few because the department isn’t required to make them public.
Secretary of Transportation Nathan Hayward III said the state could sign long-term sale-lease back agreements with private investors for Interstate 95 and Delaware 1. Hayward said it is the best way to solve a funding crunch that has delayed dozens of road and bridge projects.
State law doesn’t allow scrutiny by the public or most legislators. Hayward and the co-chairmen of the Legislature’s Joint Bond Bill Committee would have to approve the partnership.
A sale-lease back agreement would permit a private group to pay the state a large sum up front for the right to collect toll revenue over a period of time.
Groups would bid for the right to operate a state-owned roadway.
State lawmakers authorized the talks this year without realizing that neither they nor the public would be privy to details of the discussion.
Among the concerns are how the money to add two lanes to Interstate 95, improve the ramps on Delaware 1 and add six E-ZPass lanes to the Newark toll plaza would be spent, how much the Newark toll would be increased and whether the public’s roads would end up being leased or sold outright.
If the state reaches agreement with a consortium for the work it would be the first venture under the Public-Private Partnership Act of 1995. It is intended to help the state finance big road projects. The same law allows the state to act with minimal legislative oversight and public input.

10/18/05-The Delaware Department of Transportation has estimated the state could bring in more than $3 billion if it leases public-owned roads to private groups, which would then charge tolls.
Secretary of Transportation Nathan Hayward III is calling for the state to consider long-term sale-lease back agreements with private investors for Interstate 95, Delaware 1 or any bypass for U.S. 301. Hayward said it is the best way to solve a funding crunch that has delayed dozens of road and bridge projects.
A sale-lease back agreement would permit a private group to pay the state a large sum up front for the right to collect toll revenue over a period of time.
Groups would bid for the right to operate a state-owned roadway.
As is the case with other contracts, the state would decide how much tolls could increase and how to pay for road repairs and upgrades.
The Delaware General Assembly would have the final say on any agreement between the state and private investors.
According to estimates, the state would receive $2.5 billion to lease I-95 to a private group for 99 years. If U.S. 301 is added to the lease, the projection increases to $2.8 billion. Adding Delaware 1 to the list could push the projection to $3.6 billion, the Delaware State News reported.
Plans by the highway department to spend the money include using the first $900 million to pay off bonds issued in previous years to finance projects. As much as $900 million more, depending on which highways are leased, would go for roadwork yet to be completed because of a lack of funds.
The remaining $1.1 billion to $1.8 billion would be earmarked for the state’s pension fund to create a long-term endowment for future roadwork, the newspaper reported.