Tennessee’s decision to introduce “Choice Lanes” as a means to alleviate congestion on state highways marks a significant shift in the state’s approach to transportation infrastructure. The use of municipal bonds for this purpose represents a departure from Tennessee’s historical reliance on pay-as-you-go funding for road projects. With the recent passage of the Transportation Modernization Act, the state aims to address its growing population and increase economic opportunities for both rural and urban communities.
The concept of optional tolled lanes, already familiar in several other states, is set to be implemented in Tennessee with the construction of the first project from Nashville to Murfreesboro along Interstate 24. This initiative is part of a broader strategy to accommodate the state’s rapid population growth, which has outpaced its existing transportation infrastructure. By partnering with private concessionaires to design, build, finance, operate, and maintain these tolled express lanes, Tennessee seeks to leverage private sector resources to fund much-needed highway improvements.
While the introduction of Choice Lanes has received support from organizations like Beacon Impact, there are also critics who raise concerns about the privatization of essential infrastructure. State Senator Heidi Campbell, for example, argues against privatizing parts of the transportation network, citing potential risks of firms backing out of contracts and the loss of state control over critical assets. Campbell emphasizes the importance of investing in public transit and multi-modal connectivity, instead of solely focusing on expanding highway capacity.
As Tennessee moves forward with plans to develop Choice Lanes, the Department of Transportation has initiated public information and comment meetings to engage with stakeholders and address community concerns. Environmental studies are also being conducted to ensure compliance with regulations and mitigate any potential impact on the surrounding ecosystem. These transparency measures aim to build public trust and facilitate meaningful dialogue throughout the project’s development phases.
The use of private activity bonds to finance the construction of Choice Lanes introduces a new financial model that shifts repayment responsibilities to the private operator. This approach reflects a departure from the state’s traditional funding mechanisms and requires careful consideration of risk allocation and revenue streams. Rating agencies like Moody’s, S&P Global Ratings, and Fitch Ratings will assess the creditworthiness of these bonds separately, factoring in the performance and financial stability of the private entity.
Tennessee’s venture into Choice Lanes represents a bold step towards modernizing its transportation infrastructure to accommodate future growth and economic development. While the use of public-private partnerships offers new opportunities for innovation and efficiency, it also raises questions about ownership, accountability, and long-term sustainability. As the state navigates the complexities of implementing this ambitious project, stakeholders must balance the need for progress with the importance of prudent planning and community engagement.