More Trouble On SH 130 Toll Concession

The new owners of the SH 130 Concession Co. are suing Cintra and 13 others claiming they knew of pavement flaws and the impending financial crash before the $968-million toll road was completed in 2012. They claim Cintra hid that information from lenders, and they now want to claw back $330 million that was paid by Cintra to its contractor parent Ferrovial to complete the two-lane asphalt road south of Austin.

A key issue is pavement reconstruction work on SH 130 that was left undone by Ferrovial and its jv partner Zachry before the project company’s bankruptcy in 2016. Berger Group estimated the cost of completing that work a year ago at $90 million. The lawsuit now claims the cost is $130 million.

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About Bill Reinhardt

Editor of Public Works Financing newsletter
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