Companies that build private toll roads are pressing states to assume more financial risk of traffic not meeting expectations, a change that benefits the operators while threatening to increase taxpayer costs.
Three months before proposing in his Jan. 24 State of the Union speech to speed up construction projects, President Barack Obama designated replacement of New York’s Tappan Zee Bridge for “fast-track” approvals, saying he wanted to cut red tape and create jobs.
Investors are driving the New York State Thruway Authority’s borrowing costs to a 14-month low relative to benchmark debt in a bet that the agency will be able to finance the largest project in its 63-year history.
Smaller, rural states with the least traffic congestion felt the impact of about $27 billion in U.S. highway economic-stimulus funds more than those with large urban areas and the biggest budgets for roads and bridges, a national study said.
The International Swaps & Derivatives Association, a financial industry derivatives group, is being probed as part of a European Union antitrust investigation into how data on credit derivatives is shared.