RECENT TOLL ROAD INNOVATIONS

It is noted that the current generation of toll roads began with the Perrit Parkway in Connecticut and a section of the Pennsylvania Turnpike. Later in the early 1950s, construction began on many of the existing toll roads. These were funded by bonds supported solely by revenues generated by the facility net of maintenance and rehabilitation needs. Toll roads which filled in the 'missing links' in the Interstate Highway system were financed primarily by revenue bonds with a few examples of state guarantees and/or subsidy arrangements. Since the 1930s however, a common theme has been the uniqueness of each project. This includes the way tolls are collected, the type of patron served, the maintenance, rehabilitaiton, etc. Today, the private sector is beginning to take a more direct role in project financing, construction, and operation. Current toll roads are more 'market driven.' The margins of safety required by public and private investors is discussed. The critical factors that influence the balance between future rewards and the initial financial risks are noted. The question of the provision of financial safeguards is also discussed.