Transurban announces it will exit proposed toll lane expansion
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An Australia-based company that was the lead partner in a plan to build toll lanes to widen I-270 and parts of the Capital Beltway in Montgomery County announced that they will exit the project.
Transurban, lead partner in a consortium known as Accelerate Maryland Partners, issued a statement Thursday evening — the start of the Friday business day in Australia — announcing it will not proceed with the project.
The announcement comes less than two weeks before the company was required to meet a key deadline and submit its design and finance plans for the project.
In a statement, the company said the project faced challenges including delayed environmental approvals, “a changing political landscape,” and unresolved lawsuits.
The project, first proposed by former Gov. Larry Hogan (R), was considered to be the largest public-private partnership in the nation. Transurban and the members of the consortium were expected to widen portions of the Capital Beltway, I-270 and the American Legion Bridge using toll lanes.
The costs for the project would be recovered over the 50-year life of the agreement. At the end of the contract, ownership of the project would revert to the state.
The consortium received an initial predevelopment contract for the project and was considered a favorite to build and manage the expanded highways. The private consortium would recoup its costs over 50 years through toll collection. At the end of the term, the toll lanes would have reverted to the state.
Gov. Wes Moore (D) has made it clear since last year that he sought a change of direction in the plan.
Moore’s office offered a brief written statement after the company’s press release Thursday evening.
“The termination of the Phase P3 Agreement has no bearing on the approved federal Record of Decision for Phase 1 South or the state’s commitment to addressing congestion issues affecting the region,” Moore’s statement read, in part. “Because AM Partners executed its contractual right to not proceed, MDOT does not owe any payment to AM Partners. The state remains committed to continuing progress and will move forward in a manner that ensures social equity, environmental protection, and engagement with local partners while always acting in the best interest of taxpayers.”
This breaking news story will be updated.