We have seen some interesting discussion and debate in recent issues of PWF about the comparative benefits of revenue risk vs. availability payment P3s. Due to their operating methods and significant public policy objectives, this debate may be particularly relevant to the delivery and operation of Express Toll Lanes (ETL), often referred to as HOT lanes or Managed Lanes. There have been examples of P3 concessions of each type in the express lanes sector, including some very large, multi-billion dollar projects.

In recent years, at least some express lanes projects have proven to be attractive revenue risk investments; in part due to the very nature of managed lane revenue profiles. ETL annual revenue growth rates may be three to four times the rate of total daily traffic growth in the corridor. The mere fact that raising toll rates is needed to keep the lanes flowing freely (and not limited by CPI or other constraints) is another attractive feature for the RR model.