Adam RollinsThis story was originally published in the Texas Government Insider newsletter from Strategic Partnerships, Inc. To have the latest government contracting news stories from across the country delivered straight to your inbox, click here to subscribe.
In an unprecedented action, the Texas Department of Transportation (TxDOT) has officially finalized the termination of the State Highway 288 Comprehensive Development Agreement with a private sector partner. TxDOT now fully controls oversight and management of SH 288, which includes maintenance, operation and tolling of the Harris County roadway.
In 2016, TxDOT signed a contract with a private company to build and maintain the $4 billion tollway for approximately 50 years. However, less than a decade into the agreement, TxDOT and the Texas Transportation Commission (TTC) determined they wanted the Texas 288 Toll Lanes under state control. TxDOT opted to pay the private company overseeing the lanes $1.7 billion to buy-out the road.
TxDOT anticipates paying off the $1.7 billion buy-out payment with future toll revenue bonds. By using revenue generated by toll users along the roadway, the agency can ensure the investment won’t impede development on other projects across Texas. Toll rates will also fund on-going and future maintenance and improvements along SH 288.
The Texas Transportation Finance Corporation (TTFC) will be in charge of the tollway. The TTC created the public nonprofit transportation corporation March 3, 2024, to assume custody of the SH 288 operations and management.
The Texas 288 Toll Lane project was originally one of a selection of public-private partnership (P3) development agreements signed by Texas officials. It was the only one of its kind in the Houston area.
Photo courtesy falsecognate
