Highway 407 - Young

Highway 407 - Young - Privatization of Highway 407 Why did...

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Privatization of Highway 407 Why did the government want to privatize the 407? o Car tips in the GTA rose 157% from 1964 to 1986. o This lead to congestion; blocked traffic cost $2 billion a year in lost productivity o Feared that the continued delay in dealing with traffic would drive away investment o The 407 was necessary to alleviate traffic congestion. o Unfortunately, it often lagged behind other budget priorities; at the rate that highway construction was occurring in Ontario, it would take 25 years for the highway to be completed. o The NDP government decided to accelerate the development of the project by using toll financing and the private sector to help construct the highway. o MTO invited private sector proposals to develop, design, build, operate and maintain the highway. o This project would contribute 20,000 jobs at a time when the economy was hurting. o In three years (1993 to 1996) the first 36 km of the highway were completed. o In 1996, the Annual Report of the Provincial Auditor stated that significant financial risks were still being borne by the province in spite of the private sector involvement. o In 1997 the Conservative Government stated the highway would be reviewed under the Ontario Privatization Review Framework. In 1998, it was announced that the highway would be sold, and it was in April 1999, making it the largest privatization undertaking in Canadian history. Goal:
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This note was uploaded on 06/02/2011 for the course ADMS 1010 taught by Professor Jurkowski during the Spring '09 term at York University.

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Highway 407 - Young - Privatization of Highway 407 Why did...

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