Sen Raymond Lesniak is revising his bill (S2539) which would allow the New Jersey Turnpike to be concessioned. A Lesniak staffer told us today that the senator will move in the Senate transport committee to make amendments, the most important of which is to put the Turnpike Authority on an equal footing with private bidders. The bill as introduced provides for a concession deal to be negotiated and finalized after which the Turnpike Authority will have the right to trump the deal.

Lesniak was told that investor groups would sit on the sidelines - not participate - if the Turnpike Authority was given such a preferential position in the process. Instead his bill will be amended to provide for the Turnpike Authority to make its bid along with private bidders, not knowing their bids.

At assembly hearing he laid out new position

He said in a speech to a state assembly hearing on asset monetization in Trenton Feb 15: "My proposal allows the Turnpike Authority to compete with private proposals and continue to manage its operations if it is the successful bidder. No one believes that government, absent competition, operates in the most efficient manner.

"My proposal would allow the Turnpike Authority to compete, and it may be in the best position to do so.

"In that regard, my bill needs to be changed to effectuate that competition.

"As it stands, the Turnpike Authority will be allowed to better the last, best proposal from private companies. I have been informed, and believe to be accurate, that private companies will stay on the sidelines if they are set up and, quite frankly, used in this manner.

"I would suggest allowing the Turnpike Authority to compete on the same terms and conditions and at the same time, as private companies. This would foster the competitive environment needed to best serve the public interest."

Lesniak also mentioned some other smaller amendments he will propose to the committee.

TOLLROADSnews 2007-02-16