TxDOT pushes forward on buyback of SH 288

AUSTIN, TX -- To provide Texans with toll relief and more free lanes on which to drive, the Texas Department of Transportation (TxDOT) is preparing to terminate the SH 288 Comprehensive Development Agreement (CDA).

This action will place the SH 288 managed lanes in Harris County under full state control allowing future toll rates to be significantly less than what is allowed under the current agreement and enabling TxDOT to move ahead with adding more free lanes along SH 288.

“Building roads, reducing tolls, and saving taxpayer money are top priorities,” said Governor Greg Abbott. “All three are achieved with the Texas Department of Transportation terminating the SH 288 Comprehensive Development Agreement. It will allow the State of Texas to receive over $2 billion in added valuation. TxDOT will use the added value to slash future toll charges and to build free lanes on that segment of State Highway 288. I thank TxDOT for making it easier and cheaper for Texans to travel that route.”

The public can expect a reduction of average daily toll rates by 50% in the next few years. Also, TxDOT will be prepared to begin construction of additional free lanes along portions of SH 288 by no later than 2030, eliminating the contractual restrictions and repayment requirements specified in the current concession agreement.

“I have worked every day for the last few weeks with TxDOT, the Governor, and the Attorney General to bring about this historic action to terminate the SH 288 Comprehensive Development Agreement with a foreign company,” Lt. Gov. Dan Patrick said. “It was a team effort. We will provide meaningful relief for Texas drivers along this corridor. Securing a more than $4 billion asset for just $1.7 billion will not only benefit Texas drivers, it will also enable TxDOT to continue investing in and advancing crucial roadway projects across the state. This strategic action demonstrates our commitment to making fiscally responsible decisions and prioritizing the best interests of Texas and its residents.”

“By taking this proactive, cost-saving opportunity, Texas will be able to provide toll relief by reducing average toll rates by 50% for drivers as soon as possible,” said Texas Transportation Commission Chairman Bruce Bugg, Jr. “By terminating this CDA, Texas will also be able to accelerate the construction of general-purpose lanes much faster than what the current CDA allows us. This is a big win for our taxpayers.”

TxDOT believes the cost of the “buy out” provision in the contract is substantially below the value of future toll revenues on the corridor—even with the anticipated reduction in toll rates. It is expected that the “buy out” payment of $1.7 billion would be paid off with future toll revenue bonds, ensuring that other planned projects around Texas will proceed on schedule. Additionally, Texas can pay off debt at least 10 years earlier than the current concession agreement, allowing future tolls to be removed.

The state intends to assume operations in October 2024. Aside from lower toll rates and additional free lanes in the future, drivers should not expect to see any notable changes regarding maintenance, operations, or billing.