Shifts in privatization pose more risk to states
Government leaders across Indiana are turning to outside sources to fund and operate big infrastructure projects. But they're unlikely to see the windfalls that former Gov. Mitch Daniels achieved when he leased the Indiana Toll Road to a foreign consortium for $3.8 billion in 2006.
The Times in Munster reports investors in state projects are more likely to demand guaranteed fixed annual payments before providing money for the projects. That helps investors insulate themselves from the risk that revenue from the projects won't meet expectations.
The new approach to privatization has forced officials in Indiana and Illinois to rethink their funding plans for the 47-mile Illiana Expressway.
The states are offering private investment teams competing for the road project annual payments throughout the 35-year lease.
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