Spanish Group Pays $13B To Operate New Jersey Turnpike

May 20, 2008 9:32 a.m. EST

Harrisburg, PA (AHN) - Spanish transport firm Abertis Infraestructuras will pay nearly $13 billion to operate the New Jersey turnpike for 75 years. New Jersey will retain ownership of the 500-mile road network.

The money will be used to fund road repairs.

Under the agreement, toll increases will be limited to 25 percent next year followed by annual increases of 2.5 percent or the rate of inflation, whichever is greater, the years thereafter. Abertis is also required to maintain the turnpike and undertake a 10-year $5.5 billion capital improvement plan.

Abertis's bid was in partnership with Citi Infrastructure Investors, a unit CitiGroup of New York.

The lease agreement, however, is still subject to legislative debate and approval. It is expected to be ratified in September.