Citi Infrastructure Investors (CII), a unit of Citi Alternative
Investments, a division of Citi, was named the preferred bidder on the
75–year lease of the Pennsylvania Turnpike. The bid presented by the
consortium led by CII, Abertis Infraestructuras and Criteria CaixaCorp
the main shareholder of Abertis, amounts to $12.8 billion, and is one of
the largest public to private partnership initiatives undertaken in the
United States. Execution of the concession agreement is subject to
enabling legislation and the pertinent authorizations from the
Pennsylvania General Assembly. CII and Abertis will have joint
management control. "We are honored to be chosen to partner with
the Commonwealth of Pennsylvania on this important project," said Michael Froman, Managing Director and Partner of Citi
Infrastructure Investors. "We look forward to
working with Governor Rendell and his administration, the legislature
the Pennsylvania Turnpike Authority and its employees to create value
for the Commonwealth and to serve the interests of those who live and
work in Pennsylvania." "This is a great day for Pennsylvania," said Pennsylvania Governor Edward G. Rendell. "We
urgently need new funding for road and bridge repair, and a turnpike
lease will help us meet that need. Under the terms and conditions we
set, the turnpike will be upgraded with tolls not higher than what the
Turnpike Commission would charge under Act 44. Where Pennsylvanians will
see a major difference is on our other roads. Road repair all over the
state will accelerate because of the lease, and we will be able to
cancel the plan to impose tolls on Interstate 80." The $12.8 billion lease payment would be dedicated to road and bridge
repair and support 73 public transit agencies across the state. By
investing the money for the long term, the lease plan would generate
annual payouts for transportation over the 75–year life of the lease.
These payments would average 15 percent higher than the maximum
available under the I–80 tolling plan, assuming investment returns equal
to the average earnings of the Pennsylvania State Employee Retirement
System over the past 20 years. The winning bid includes some of the world´s
top investment and infrastructure companies. CII, a division of Citi
the leading global financial services company, invests in mature, core
infrastructure assets largely in North America and Europe. On May 13
2008, CII announced that it had entered into a partnership with the
Vancouver Airport Authority to jointly pursue the sourcing, funding and
maximization of potential airport opportunities through YVR Airport
Services Ltd. (YVRAS). Under the terms of the agreement, CII will also
acquire 50% of the shares of YVRAS and YVRAS will become CII´s
exclusive platform for investing in airport assets. In November 2007
CII led a consortium in the purchase of Kelda, a Yorkshire (United
Kingdom) water company. Abertis is one of the world´s largest private
toll road operators. It manages directly a total length of more than
2000 miles of toll roads in 10 countries and four continents. Abertis
already operates and manages several large infrastructure facilities in
the United States, including Orlando Sanford Airport, Concourse E of
Atlanta International Airport, and Burbank Airport, as well as the
Teodoro Moscoso Toll Bridge in San Juan, Puerto Rico. "We are looking forward to developing a strong, long–term relationship
with the Commonwealth, to providing good customer service to those who
live and work in Pennsylvania and to implementing a robust operations
maintenance and capital expenditure program," added Juan Bejar, Co–Head
and Partner of CII. About Citi Infrastructure Investors: Citi Infrastructure Investors (CII) is an investment center within Citi
Alternative Investments (CAI), a division of Citi, which invests in
mature, core infrastructure assets, largely in North America and Western
Europe. Its focus is on securing high quality assets and providing
pension funds, insurance companies and other institutional investors
with an opportunity to invest to create long–term value. The team is
comprised of some of the most experienced infrastructure investors and
asset managers in the world, with broad and deep backgrounds in toll
roads, airports, ports and utilities. Investments include the
acquisition of Kelda, a Yorkshire (United Kingdom) water company and a
joint venture with Vancouver Airport Services. About Citi: Citi, the leading global financial services company, has some 200
million customer accounts and does business in more than 100 countries
providing consumers, corporations, governments and institutions with a
broad range of financial products and services, including consumer
banking and credit, corporate and investment banking, securities
brokerage, and wealth management. Citi´s
major brand names include Citibank, CitiFinancial, Primerica, Smith
Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com. About Abertis: Abertis Infraestructuras, who have been joined by their major
shareholder Criteria CaixaCorp in this effort, engages in the management
of transport and communications infrastructures in five segments: Toll
road concessions, airports, car parks, logistics parks, and
telecommunications. The company, based in Barcelona, Spain, has
interests in 60 operating businesses in 17 countries on four continents
with a U.S. presence in five airports. The company employs 12,000
globally and currently has more than 2,000 miles of toll roads under
direct management on four continents.
