Cintra BAILOUT: firm snags $3.6 million payment for LOSING BID on SH 121

Posted on by

Link to article here.

Wanna know why there’s no money for roads? Here’s your answer…
Hold your breath or at least resist the urge to throw things at your computer or kick the dog…despite public opposition, Texas Senator John Carona and State Rep. Charlie Geren carried the bill to lift the cap on payments to losing bidders on certain toll contracts called Comprehensive Development Agreements or CDAs. The original limit was $1 million, then in 2007 it was reduced to $250,000, and now since SB 882 passed, there is no cap on how high these payments can go. The amount of taxpayer money is solely at the discretion of government bureaucrats and politicians who bow to foreign interests, like the Spanish firm Cintra. So we’re paying LOSERS for not even building the roads! I warned you…the cronyism is only getting worse, and it’s at the expense of the taxpayers!
Thursday, Aug 13, 2009

Spanish firm to receive $3.6 million after losing road project

Gordon Dickson
Star-Telegram
gdickson@star-telegram.com
The Regional Transportation Council agreed Thursday to pay Spanish firm Cintra $3.6 million to cover costs the Spanish firm incurred before losing its bid for the Texas 121 toll road project, despite objections from some Denton County officials.The road is now known as Sam Rayburn Tollway, and connects cities north and east of Grapevine such as Coppell, Carrollton and Plano.

Cintra, a publicly held firm known worldwide for building toll roads with private investment dollars, was conditionally awarded the toll project in Denton and Collin counties by the Texas Transportation Commission in February 2007. But under pressure from Dallas-area leaders, the state commission terminated that award in August 2007, allowing the Plano-based tollway authority to take the project.

During the seven months it held the project, Cintra incurred costs related to the federal TIFIA loan program, a stipend for unsuccessful work and other, unidentified post-bid costs, North Central Texas Council of Governments transportation director Michael Morris said.

Denton County Commissioner Andy Eads spoke against the payment, noting that Denton County wanted Cintra to keep the project. “For Denton County to now be looked at to remedy this is, in our opinion, inappropriate,” Eads said.

Even so, the 40-member RTC approved the $3.6 million payment on a split voice vote.

The money will come out of toll revenues generated on the tollway in these counties: Denton County, $1,961,063; Collin County $1,446,086; and Dallas County $253,065.

Tarrant County won’t have to pitch in to pay Cintra, even though about 4 percent of tollway traffic is from greater Fort Worth. State law prohibits the transfer of toll revenue from the Texas Department of Transportation Fort Worth district to the Dallas district, where the tollway is.