HARRISBURG, PA-Final bids are due Friday on a 75-year lease to operate the Pennsylvania Turnpike, an arrangement that the commonwealth says will generate billions of dollars above and beyond what highway toll hikes would produce to fund infrastructure repair and improvements. The deadline of May 9 was extended after some of the bids triggered a protocol, a spokesman for Gov. Ed Rendell tells GlobeSt.com. “Because some bids were within 10% of the highest bid, we are obligated to solicit best-and-final offers due this week,” Rendell said in a statement. “We will be back next week.”

Rendell first proposed leasing the 570-mile toll road last May after an analysis by Morgan Stanley said a lease would generate the most revenue out of three transportation funding options. The governor is now touting a lease as a source of alternate funding to Act 44, which the Pennsylvania Legislature approved in July to produce new transportation revenue.

Under Act 44, tolls on the turnpike would increase and tolls would be charged for the first time along Interstate 80 through Pennsylvania, for added revenue averaging $945 million per year for the first 10 years. Sections of I-80 through Ohio and Indiana are tolled.Turnpike tolls under a leasing arrangement would be the same as under Act 44, “so there will be no additional cost to travelers,” Rendell said in a statement. However, one purpose for leasing the turnpike would be to limit the rate of toll increases on the roadway along with eliminating the need to toll motorists traveling I-80. Toll increases under the leasing scenario would be limited to 2.5% annually, while under Act 44 the annual increase could be considerably larger without a lease in place.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.