Using Money Wisely? $1.4 Billion for 5,500 Vehicles

Today's Washington Post has an article about a new bypass for U.S. 460. 

The new toll road is being constructed pursuant to the state's Public-Private Partnership Act and does not require legislative approval.  According to the Washington Post, taxpayers' portion of the road is being funded as follows:

• $250 Million from the Virginia Port Authority (which McDonnell recently fired the entire board and replaced with his own appointees);
• $216 Million from state bonds rated BBB- (one notch above junk status); and
• $80 Million from Virginia's brand new Transportation Infrastructure Bank in case toll revenue underperforms.

It was proposed twice and no private entity would make a bid.  After the state put this amount of money on the table, a private entity finally made a bid to construct the road by 2016, charge tolls, and earn a profit.

However, what struck my eye about this project was the amount of vehicles expected to use it - 5,000 to 6,000 per day.  In other words about $254,545 per daily vehicle trip. 

I-495 Express Lanes Set to Open

Last week, I attended a briefing given by Transurban - the company constructing the I-495 Express Lanes that will run between the Mixing Bowl and the Dulles Toll Road on I-495.  You can see the briefing we were given at the end of this post. 

These lanes are sometimes called High Occupancy Toll Lanes.  The basic concept is that users will be pay tolls via transponders that vary depending upon traffic on the lanes.  The more traffic, the more the tolls.

If you have three people in the car, you ride free.  However, you have to purchase a new transponder with a switch so the system can differentiate your car from others. 

The project is funded partially with public funds, but mainly with private money pursuant to an agreement with the Commonwealth guaranteeing a specified rate of return to the investor group. 

Whether you use the lanes or not, you should educate yourself about not only how the lanes work, but also where the exits are located - there are not exits at every Beltway exit and there are some exits off the HOT lanes that do not exist on the Beltway.

If you would like more information, you can review the I-495 Express Lanes website here:

I-495 Express Lanes Website