Macquarie, Cintra Closer to $3.85 Bln U.S. Road Win (Update1) Jan. 25 (Bloomberg) -- Macquarie Infrastructure Group and Cintra SA moved a step closer to winning control of an Indiana toll road for $3.85 billion after the state's proposal cleared its first legislative hurdle last night.
A state House of Representatives committee voted to move Governor Mitch Daniels's plan to lease the 157-mile (253- kilometer) toll road to a private company. The group's offer for a 75-year lease would be the largest amount ever paid to a U.S. state or municipality for an asset.
Daniels, a Republican, on Jan. 23 announced that Australia's Macquarie and Madrid-based Cintra Concesiones de Infraestructuras de Transporte SA offered the highest amount among four bidders seeking the highway. Daniels plans to use the money for other road construction projects statewide.
``This is an exciting and unprecedented opportunity to leap Indiana forward in a way that none of use could have imagined in the last few years,'' said committee chairman Jeff Espich, a Republican from Uniondale, during the meeting last night, which was shown on a state Web cast. ``I'm excited and proud to vote for this bill.''
Known as ``the Main Street of the Midwest,'' the Indiana Toll Road is the part of Interstate 90 that spans the northern part of the state from Chicago to Ohio. The expressway carries more than 50 million vehicles a year and generated revenue of $95.6 million in the 12 months ended June 30.
Deadline
Macquarie, the world's largest developer of toll roads, and Cintra also teamed up last year to win an auction for the adjoining Chicago Skyway. The companies agreed to pay the city $1.83 billion for a 99-year lease of the 7.8-mile elevated toll road.
The Indiana House's Ways and Means committee voted 14 to 10 to advance the bill to the full chamber last night after three days of meeting on the bill, including about three hours yesterday.
The vote was split along party lines, with all 10 Democrats on the committee voting against the proposal, said John Schorg, a Democratic spokesman. The Indiana House is controlled by Republicans, who have 52 members versus 48 Democrats. In the state Senate, there are 33 Republicans and 17 Democrats.
Schorg said House Democrats later today are to announce an alternative plan. He wouldn't provide details.
The House must approve the bill by Feb. 2 to move the matter to the state Senate for a vote. Macquarie and Cintra, which would each have a 50 percent stake in the toll road, said earlier this week that they hope to close the transaction by the end of June.
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