This article investigates the financial failure of the Pocahontas Parkway, Route-895, in Virginia. This was the first public-private partnership (P3) used for a highway project in Virginia and the private sector was eager to contribute and ultimately spent more than $300 million. The route that the highway follows was meant to become a center of development, with several thousand homes being planned. Then the economic recession hit and that development never materialized resulting in a road that is barely traveled with pricey tolls. In 2006 Transurban took over management of the road with hopes of turning the road around but had to transfer the road to its creditors in July 2013 because the company could no longer afford to meet the required debt payments. This project exhibits a primary flaw in P3 deals in that they often solely based on profit rather than concrete community infrastructure needs.
Another article on the same topic with more detail on the road’s history and what the future may hold for the road can be accessed here.