On Tuesday, the Texas Department of Transportation (TxDOT) announced it had terminated the private developer agreement for SH 288, and finalized the state’s buyback of the road.
The move is expected to bring Texans toll relief and provide drivers with more free lanes to drive in the Houston area, officials said. The tolling policies on the SH 288 managed toll lanes, which had been a part of the SH 288 Comprehensive Development Agreement (CDA), will not change in the short term due to a contractually required transition period, officials said. However, by transferring the project to state control, the TxDOT will be able to reduce future toll rates and will escalate at a slower pace. TxDOT said it anticipate that future toll revenues will be able to fund maintenance on the road, as well as fund improvements to non-tolled lanes in the SH 288 corridor.
“This is an extraordinary outcome for Texans. Not only will this bring future toll relief and additional free general purpose lanes for drivers, but the state is acquiring a $4 billion asset for $1.7 billion,” TxDOT Executive Director, Marc D. Williams said. “This type of buy-out is unprecedented in the United States and is a very big win for SH 288 drivers and our taxpayers.”
As part of the termination agreement, the state will assume operations, but drivers shouldn’t see any immediate changes, officials said. TxDOT will continue to manage traffic to a target minimum of 45 mph.
Officials said the cost of the “buy-out” provisions of the contract, $1.7 billion, is below the value of future toll revenues on the corridor. The buy-out is expected to be paid off with future toll revenue bonds so as not to impact other planned TxDOT projects. TxDOT said it will begin plans to build two free general-purpose lanes (one in each direction) along portions of SH288, by no later than 2030.