MEIKHTILA UNIVERSITY OF ECONOMICS

MEIKHTILA UNIVERSITY OF– 3)

Nay Pyi Taw (Batch ECONOMICS
Nay Pyi Taw (Batch – 3)

Public Private Patenership (MPA- 213)

2nd Year, 1st Quarter
Management (MPA-122)

1st Year, 2nd Quarter

Assignment (2)

Present and Written by MPA(2)-23 Mg Sai Kyaw Han Htoo

Group – ( 5 )

Assignment (2)
Groups (5) Members List

MPA -5 Mg Shwe Htun

MPA -6 Ma Ei Shwe Sin Htun

MPA -14 Ma Swe Yu Hlaing

MPA -23 Mg Sai Kyaw Han Htoo (Present and Written)

MPA -41 Ma Phyo Wai Win

MPA -49 Ma KhinKhinHtay

MPA -58 Ma Win Thiri

MPA -67 Ma Nyein Thu Han

MPA -76 Ma Yee Yee Mon

Date – 28.2.2023 (Tuesday)

 Content

1. Introduction
2. California 91 Express Lanes Toll Road (Project Overview)
3. Project History
4. Billing system
5. Project Financing and Delivery
6. RCTC 91 Express Lanes Fund
6.1Economic and Other Factors
6.2Contacting 91 Express Lane’s Management
6.3Overview of the Financial Statements
6.4(91) Express Lanes Financial Analysis
7. Conclusion (Future Plan)

1. Introduction
 State Route 91 (SR 91) is an east-west state highway in the U.S. state of
California that serves much of the Greater Los Angeles metropolitan area. The
freeway for its entire length is the official route from Vermont Avenue in Gardena.
The California Department of Transportation (Caltrans) relinquished local
jurisdiction in 2003, no longer controlling this section of the highway. SR 91 is
part of the California Highway and Expressway System, serving the state's
economic, As well as being an essential road for defense and migration, it is part of
the national highway network required by the federal government.

2. California 91 Express Lanes Toll Road (Project Overview)

The express lanes were originally developed under a long term public-
private partnership (P3) concession by a private consortium, the California Private
Transportation Company (CPTC), opening in 1995. In 2003, the Orange County
Transportation Authority (OCTA) purchased the operating franchise for the 91
Express Lanes from CPTC, and the lanes were returned to public control.

3. Project History

91 Express Lanes are (4) lanes; It is an 18-mile long toll road that connects
the SR-55 and SR-91 interchange and the state road between the SR-91 and
Interstate (I)-15 interchange.

RCTC is working with Caltrans to build the 15/91 Express Lanes Connector,
which will connect 15 Express Lanes to 91 Express Lanes. As a new connection,
the eastbound 91 Express Lanes will connect to the northbound 15 Express Lanes
and the southbound 15 Express Lanes to the westbound 91 Express Lanes. 15/91
Express Lanes Connector to Corona; Norco, Jurupa Valley, Trustworthy for
residents of East vale; It is also a convenient payment system for travel. It is
designed to provide a connection to northern San Bernardino County as well as a
smooth transition between express buses.

The project will extend beyond East 91st Street. The east end of the 91
Express Lanes will be about a mile and a half east of Promenade Avenue to help
connect vehicles. For the 1984 Summer Olympics, the 25 km (16 mi) long
highway was also the venue for the men's cycling trials. Los Angeles As the only
freeway connecting Orange and Riverside counties, SR 91 is one of the busiest
routes in Southern California.

With traffic and congestion levels on the SR-91 freeway increasing sharply
in the 1980s, the California Department of Transportation (Caltrans) proposed
building a four-lane High Occupancy Vehicle (HOV) facility in the median of the
highway in order to increase capacity in the corridor. However, after gaining the
necessary environmental clearances, the project stalled due to controversy over
HOV lanes, and its funding was redirected to other projects.

In 1989, the California legislature enacted AB 680, which authorized

Caltrans to enter into agreements with private entities for the construction of up to
four toll projects around the state that would supplement existing state-owned
transportation facilities.

The legislation authorized Caltrans to grant easements, issue permits, and

lease those facilities to the private entities for up to 35 years. AB 680 also allowed
private concessionaires to identify specific projects where a private facility would
perform favorably.

The CPTC—then a subsidiary of architectural firm CRSS—proposed to

Caltrans to construct the planned SR-91 HOV lanes as express toll lanes under the
AB 680 legislation. CPTC and Caltrans were able to successfully negotiate a build-
transfer-operate franchise agreement for the project, which was awarded in
December 1990.

Under the agreement, while CPTC maintained control over the toll rates,
CPTC’s rate of return would be capped, with any excess profits to be split equally
between Riverside and Orange counties. The contract also included a non-compete
clause that prohibited capacity improvements to the parallel general purpose lanes
on SR-91.

In 1992, CRSS’s majority interest in the CPTC was purchased by Peter

Kiewit Sons, Inc., and Cofiroute SA, a French toll road operator; Granite
Construction also joined CPTC as a limited equity partner and the construction
contractor for the project. The introduction of tolling to the project also triggered
additional environmental reviews, which were completed in 1991, and sparked
controversy, including two lawsuits that were successfully resolved.

Construction of the new lanes began in mid-1993 after financing for the
project was arranged, and the new facility opened to traffic in December 1995. The
91 Express Lanes became one of the world’s first fully-automated toll facilities,
with tolls collected only electronically, and pioneered the concepts of variable
pricing and premium service lanes in the U.S. It was also just the third toll facility
to be implemented on a P3 basis in the Interstate era. While the lanes were popular,
continued traffic growth in the corridor lead to worsening congestion levels on the
parallel general purpose lanes.

Growing traffic on the express lanes also led CPTC to begin charging HOV-
3+ vehicles to use the facility at a discounted rate. At the same time, the non-
compete clause in CPTC’s contract prevented Caltrans from making any
improvements in the corridor.

In April 2002, the OCTA reached an agreement to purchase the operating

franchise for the express lanes from CPTC for $207.5 million in order to eliminate
the non-compete restrictions. State legislation (AB 1010) was enacted that fall to
allow the purchase, which closed in January 2003. Following the sale, OCTA
eliminated tolls for HOV-3+ vehicles during most periods, and Caltrans added a
fifth general purpose lane in each direction. In 2014, the Riverside County
Transportation Commission initiated a $1.3 billion project to extend the 91 Express
Lanes by eight miles to I-15.

4. Billing system

Originally, the main purpose of the road was to improve the road for
carpooling and to alleviate the difficulties experienced by drivers during the
expressway's peak hours due to traffic congestion. The toll road was opened in
1995 and when it opened, it was the country's first toll road with an automatic toll
system.

The 91 Express Lanes consist of essentially two lanes in each direction of

traffic for tolling, and are white 3-foot (0.91 m) high plastic lane markings that
separate them from the main lanes of the Riverside Freeway.

All tolls are collected through an open automatic toll collection system, so
there are no toll booths to accept payment, and every vehicle is required to have a
FasTrak transponder. (FasTrak transponder is a device that receives a radio signal
and automatically rebroadcasts another signal)

91 Express Lanes uses a variable pricing system that charges road usage fees
depending on the day and time. Toll schedules are pre-set and not based on traffic
congestion, so the road is not always congested.
 The rates charged in 2022 are on Fridays, the eastbound maximum rate from
2:00 to 3:00 p.m. is set at $14.24 to travel the entire length of the road ($8.60 for
the Orange County portion and $5.65 for the Riverside County portion). Monday
through Thursday, the westbound maximum toll from 7:00 a.m. to 7:59 a.m. is set
at $15.35 ($9.40 in Riverside County and $5.95 in Orange County). On normal
days, when traveling eastbound from 4:00 PM to 6:00 PM, vehicles with three or
more occupants on designated lanes (if using designated carpool lanes at tolling
areas) will be charged a reduced 50 percent of the toll. If drivers without FasTrak
do not meet the criteria set for the discounts, the toll is considered a violation.

A toll rate increase statement is published based on the criteria on which the
toll policy will be based.

1. To reduce the risk of traffic congestion by rerouting to other times based

on available capacity;

2. 91 Express Lanes to maintain free travel speed;

3. To save travel time;

4. To plan flexible Project growth for expected travel demand;

5. Policies are in place to ensure adequate financial strength to maintain a

strong debt service position and to have sufficient revenue to operate the Toll
Lanes efficiently.

Ten (10) days notice to the public and the OCTA Board of any changes to
the toll schedule is required. Tolls once changed cannot be changed again for six
months. Tolls have been increasing every year due to inflation. Despite these
increases, lanes generally offer free tolls during most peak hour conditions.

5. Project Financing and Delivery

CPTC’s initial financing for the $126 million project was provided by a
group of commercial banks and institutional lenders. A group of three banks
provided a $65 million variable-rate bank loan with a 14.5 year term. Peter Kiewit
Sons’, the lead investor in CPTC, agreed to purchase the $35 million institutional
tranche of debt after the initial investor pulled out; this debt was subsequently sold
to CIGNA Investments in 1994, at which time a fourth bank also joined in the
financing of the project. OCTA’s reimbursable design and environmental
permitting costs for the project were converted to a $7 million subordinated loan.
CPTC also provided $19 million in private equity for the project, and made
commitments of contingent equity in the event of any revenue shortfalls.

In 2002, CPTC refinanced the remaining debt on the project with $135
million in taxable toll revenue bonds. In January 2003, OCTA acquired the project
at a cost of $207.5 million, including $72.5 million in cash from OCTA’s internal
reserves and the assumption of the recently issued toll revenue bonds for the
project. Later that year, OCTA refinanced its entire interest in the 91 Express
Lanes by issuing $200 million in tax-exempt toll revenue bonds.

6. RCTC 91 Express Lanes Fund

6.1 Economic and Other Factors

The Fund makes up $42,542,200 or 6% of Commission’s FY 2021/22

revenue budget. In FY 2021/22, toll and non-toll revenues are forecasted to
increase by 51% over the FY 2020/21 budget. This increase is based on estimated
toll transactions and current traffic and revenue data resulting from the anticipated
recovery from the COVID-19 pandemic in the prior year. The RCTC 91 Express
Lanes have exceeded initial financing expectations, and the Commission’s traffic
consultant updated the investment grade and traffic and revenue study in December
2018. The average projected long-term rate of growth for toll road revenues
beyond FY 2021/22 is 4.7%.

The majority of expenses related to the Fund within FY 2021/22 budget are
on-going general costs related to day-to-day operations of the toll facility. As a
fully electronic toll facility, motorists pay tolls through the convenient use of
FasTrak transponders that automatically deduct toll charges from a prepaid
account.

Under a cooperative agreement entered into with OCTA in December 2011,

the RCTC 91 Express Lanes are jointly operated with the OCTA 91 Express Lanes
and collectively referred to as the 91 Express Lanes. The Commission and OCTA
agreed on the use of the same initial operator, cost and revenue sharing, toll
policies, business rules, interoperability of technology, and shared marketing
activities. The joint operation allows for the sharing of costs and a seamless
customer experience.
 6.2 Contacting 91 Express Lane’s Management

This financial report is designed to provide a general overview of the Fund’s

finances for all those with an interest in the government’s finances and to
demonstrate the Fund’s accountability for the money it receives. Questions
concerning any of the information provide in this report or requests for additional
information should be addressed to the Chief Financial Officer, Finance
Department at the Riverside County Transportation Commission.

6.3 Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the

Fund’s financial statements. The financial statements are comprised of the Fund
financial statements and notes to the financial statements. The statement of net
position presents information on all of the Fund’s assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the Fund is improving or deteriorating.

The statement of revenues, expenses and changes in fund net position

presents information showing how the Fund’s net position changed during the
fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported for some items that will only result in
cash flows in future fiscal periods. The statement of cash flows presents
information on the cash flows related to operating, noncapital financing, capital
and related financing, and investing activities.

6.4 91 Express Lanes Financial Analysis

As noted previously, net position may serve over time as a useful indicator
of the Fund’s financial position. At June 30, 2021, the Fund’s net position reflected
a deficit of $285,462,152. Our analysis below focuses on net position and changes
in net position of the Fund’s financial.

7. Conclusion (Future Plan)

Studies have been conducted to build two tunnels through the Santa Ana
Mountains between Corona and Irvine, to carry 72,000 cars per day. There is also
rail service to the building. In 2005, we received permission to operate. However,
financial and technical assessments have found that the construction of tunnels is
not yet financially or technically feasible in the current financial situation. Further
study of the Irvine Corona Expressway tunnel project should be postponed until
financial considerations improve and technical progress warrants review.

If built The Irvine-Corona Expressway would follow a similar route to the

91 Freeway, and the 91 Express Lanes should be designed to reduce the increased
traffic congestion on SR 91. After construction is completed, The Irvine-Corona
Expressway is approximately 11.5 miles (18.5 km) long and is projected to be the
longest traffic tunnel in North America.The first tunnel will be a reversible two-
lane highway for cars and trucks that will change direction depending on the time
of day. The second tunnel will be designed to be exclusively accessible for
passenger rail services.

Environmental groups have criticized the proposed tunnels. Cities in Orange

County bordering the road and the Irvine company have objected, believing the
unnecessary tunneling would be a distraction to others and not as necessary as
freeway expansion. The Orange County Transportation Authority (OCTC) is
currently working on several other projects, and some ongoing projects are far
from being completed until 2030.