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  Issues & Concerns

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Issues & Concerns: Public Safety

Issues & Concerns: Homeland Security
 

Comprehensive Development Agreements

Potential for tremendous liabilities created by
Comprehensive Development Agreements.

The Corridor plan is based on  design-build-operate-maintain contracts called Comprehensive Development Agreements (CDA). While new to Texas, these CDAs have been used in Mexico, Chile, Colombia, China, Malaysia, and Hungry. These contracts often include equity guarantees, debt guarantees, exchange rate guarantees, subordinated loans, shadow toll payments, and minimum revenue guarantees. Most troubling is a class of support called "revenue enhancements" that may limit competition and allow the development of ancillary facilities.

"Instead of building public projects based on the best low bid, the state is adopting a policy of building major projects based on the best high bid. When the state enters into one of these agreements called a "comprehensive development agreement," or CDA, the state agrees to limit competition. The investor gets a guarantee that other roads will not be built to compete in any way with the CDA toll read." – State Senator Jon Lindsay [State's Game? Highway extortion, 01/06/2007]

 

 

Issues & Concerns: Questionable Assumptions
Issues & Concerns: Comprehensive Development Agreements
Issues & Concerns: Environmental Impact
Issues & Concerns: Public Finance
Issues & Concerns: Local Business Impact
Issues & Concerns: Private Property Rights
Issues & Concerns: Tourism Industry
Issues & Concerns: Misplaced Transportation Spending
       

This Page Last Updated: Monday January 08, 2007

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