RT Journal Article
SR Electronic
T1 The Sale of Highway 407 Express Toll Route
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 5
OP 14
DO 10.3905/jsf.1999.320217
VO 5
IS 3
A1 Eugenio Mendoza
A1 Mitchell Gold
A1 Peter Carter
A1 Jodie Parmar
YR 1999
UL https://pm-research.com/content/5/3/5.abstract
AB The C$3.1 billion sale of Ontario's Highway 407 Express Toll Route in May 1999 represents a milestone in the privatization of public infrastructure. This privatization, the largest in Canadian history, is noteworthy not only because of its size but because of the rapid and large value the transaction generated for Ontario. Through the sale of this public asset, the Province of Ontario received more than double its estimated C$3.1 billion investment, even though the road had been opened and tolled for only eighteen months. By tracing the history of the privatization of highway 407, this article highlights the importance of risk allocation and the concession process in the determination of infrastructure privatization prices.