Fitch Ratings Praises Toll Road Privatization
Source: InsideINdianaBusiness.com Report, 3/23/2006 10:25:35 AM
A new report from Fitch Ratings says the privatization of U.S. toll roads are an attractive option for state and local governments because of the financial resources generated and the resulting reduction in public sector investment. The rating agency’s report says the benefits to governmental entities and users include quicker and more efficient delivery of services, as well as a higher quality of services. The report also notes that private companies operating the roads can often provide added value to users at a reasonable cost while generating an acceptable profit margin.
The Fitch report notes: "Efficient Operations, Maintenance, and Life Cycle Asset Management: The private sector is not often constrained by restrictions such as statutory bidding requirements, administrative processes, and labor
contracts with union pay scales and restrictive work rules.