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]
