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TIFIA TIMES
MARCH 2001 - ISSUE NO.1

WELCOME

It's official! The TIFIA Joint Program Office (JPO) is the newest addition to the United States Department of Transportation. Established in January by OST, FHWA, FTA and FRA, the office will implement TEA-21's Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA), which provides Federal credit assistance to large-scale highway, transit, passenger rail and intermodal projects. A TIFIA loan, line of credit or loan guarantee can be used by public or private transportation sponsors to complete a project's funding package. In order to keep our colleagues and friends informed of current program news, we introduce the TIFIA Times, a periodic e-mail newsletter. Feel free to forward this to your associates, inside and outside of USDOT, with an interest in the TIFIA program and an ability to decipher our acronyms.

PROGRAM UPDATES

JPO Seeks Field Office Assistance in Developing TIFIA Project Oversight Guide

A March 1 videoconference with 15 FHWA field offices will kickstart the JPO's efforts to develop a TIFIA project oversight guide by June 2001. With credit commitments currently worth more than $3 billion, the TIFIA program will need to rely on both agency and external resources to provide appropriate project oversight. The forthcoming TIFIA Project Oversight and Credit Monitoring Guide will identify the unique risks and program issues facing credit-funded projects. The final teaming of headquarters and field office resources could vary for each TIFIA project depending on construction complexity and credit risk.

Second Solicitation in Fiscal Year 2001 Still a Possibility

Having completed an early FY 2001 selection round last November, the TIFIA JPO has yet to announce the next solicitation period for applications. With guidance from OST, the JPO will determine the need for a second FY 2001 round based on funding availability and an assessment of likely project applicants' readiness for TIFIA assistance. Beginning in 1999, the TIFIA program has held one project solicitation during each federal fiscal year.

PROJECT POSTINGS

USDOT has approved ten projects for TIFIA credit assistance, summarized below in order of application submittal (note project identification number). Prior to completing specific credit agreements, the TIFIA program obligates funds via a project term sheet. Many project sponsors maintain websites, listed at the end of project descriptions.

Fiscal Year 1999 TIFIA Approvals

Miami Intermodal Center, Miami, Florida (19991002)
Project Sponsor: Florida Department of Transportation
Total Project Cost: $1.35 billion
TIFIA Assistance: $269 million secured loan and $164 million secured loan
Term Sheet: September 27, 1999
Credit Agreements: June 9, 2000 for $269 million secured loan
Estimated Completion: December 2005

The TIFIA JPO, Florida DOT and Miami-Dade County are close to completing negotiations for the $164 million loan, backed by customer transaction charges, to build a consolidated rental car facility at the Miami International Airport. USDOT and FDOT previously signed a separate $269 million loan, backed by State fuel tax revenues, to fund property acquisition and other general program elements of this multimodal airport access program. (http://www.micdot.com/ )

State Route 125 South Toll Road, San Diego County, California (19991003)
Project Sponsor: California Transportation Ventures (CTV), a joint venture of Parsons Brinckerhoff and Egis Projects.
Total Project Cost: $397 million
TIFIA Assistance: up to $94 million secured loan and $33 million line of credit
Term Sheet: July 24, 2000
Credit Agreements: June 2001 (expected)
Estimated Completion: October 2002

CTV, the project sponsor for this new toll road in eastern San Diego County, expects final environmental clearance from the US Army Corps of Engineers as early as May 2001. The TIFIA JPO and CTV began final negotiations in January 2001, and expect to complete agreements in June 2001 for both a TIFIA loan and line of credit, just prior to closing senior bond financing for the project. ( http://www.dot.ca.gov/dist11/facts/ )

Farley-Penn Station, New York, New York (19991004)
Project Sponsor: Penn Station Redevelopment Corporation (PSRC)
Total Project Cost: $800 million
TIFIA Assistance: $140 million secured loan and $20 million line of credit
Term Sheet: September 27, 1999
Credit Agreements: November 6, 2000 for secured loan
Estimated Completion: 2005

PSRC is nearing selection of a project developer and expects to have a feasibility study completed by summer of 2001 for this $800 million refurbishment in midtown Manhattan of the landmark James A. Farley Post Office and portions of the existing Pennsylvania Station.

Washington Metro Capital Program, Washington, DC (19991005)
Project Sponsor: Washington Metropolitan Area Transit Authority (WMATA)
Total Project Cost: $2.3 billion
TIFIA Assistance: up to $600 million loan guarantee
Term Sheet: September 27, 1999
Credit Agreement: January 28, 2000
Estimated Completion: 2010

The loan guarantee is helping WMATA undertake a comprehensive $2.3 billion Infrastructure Renewal Program (IRP) to rehabilitate and replace vehicles, facilities and equipment on the 103-mile transit system. The IRP includes 24 individual projects and preventive maintenance programs. (http://www.wmata.com/ )

Tren Urbano Transit Project, San Juan, Puerto Rico (19991006)
Project Sponsor: Puerto Rico Highway and Transportation Authority (PRHTA)
Total Project Cost: $1.7 billion
TIFIA Assistance: $300 million secured loan
Term Sheet: September 27, 1999
Credit Agreement: August 4, 2000
Estimated Completion: May 2002

Assisted by $300 million in TIFIA loan proceeds disbursed in August, work on this new rail transit line for the City of San Juan has reached 75 percent completion. Project funds include $708 million in federal grants administered by the FTA.

Fiscal Year 2000 TIFIA Approvals

Tacoma Narrows Bridge, Tacoma, Washington (20001002)
Project Sponsors: Washington State Department of Transportation and United Infrastructure Washington (UIW), a subsidiary of Bechtel Enterprises.
Total Project Cost: $835 million
TIFIA Assistance: up to $240 million direct loan and $30 million line of credit
Term Sheet: September 27, 2000
Credit Agreements: Summer 2001 (see below)
Estimated Completion: May 2005

The Washington State House of Representatives is now considering a Senate-passed bill that would remove all legal restrictions against tolling this highway crossing in southern Puget Sound. UIW currently plans to rely only on capital markets debt for the project, which will rehabilitate the existing bridge and construct a new span, but will reassess TIFIA assistance after the legislative issue is settled. ( http://www.wsdot.wa.gov/Projects/SR16/NewNarrowsBridge/ )

Cooper River Bridge, Charleston, South Carolina (20001003)
Project Sponsor: South Carolina Transportation Infrastructure Bank (SCTIB)
Total Project Cost: $650 million
TIFIA Assistance: up to $215 million secured loan
Term Sheet: September 27, 2000
Credit Agreement: Spring 2001 (expected)
Estimated Completion: April 2006

With the city, state and port having reached consensus on a revised funding plan, the TIFIA JPO and the SCTIB intend to begin loan negotiations in March. Construction of this highway bridge, which will replace two aging structures that connect Charleston and Mount Pleasant, will be managed by the South Carolina DOT, currently seeking a design-build contractor. ( http://www.dot.state.sc.us )

Staten Island Ferries and Terminals, Staten Island, New York (20001004)
Project Sponsor: City of New York
Total Project Cost: $463 million
TIFIA Assistance: up to $153 million secured loan
Term Sheet: September 27, 2000
Credit Agreement: Spring 2001 (expected)
Estimated Completion: December 2003

New York City and the TIFIA JPO expect a final loan agreement as early as April to help fund this project to rebuild two terminals and replace three vessels serving ferry commuters between the boroughs of Manhattan and Staten Island. ( http://www.ci.nyc.ny.us/html/dot/html/get_around/ferry/statfery.html )

Fiscal Year 2001 TIFIA Approvals

Central Texas Turnpike, Austin, Texas (20011001)
Project Sponsor: Texas Turnpike Authority Division of Texas DOT
Total Project Cost: $3.2 billion
TIFIA Assistance: up to $800 million secured loan
Credit Agreement: 2001 (expected)
Estimated Completion: 2008

FHWA issued the second of four required Records of Decision on February 22. Loan negotiations await the issuance of RODs for the remaining two highway segments of this 122-mile turnpike system in the Austin-San Antonio corridor. (http://www.txdot.gov/)

Reno Transportation Rail Access Corridor (ReTRAC), Reno, Nevada (20011002)
Project Sponsor: City of Reno
Total Project Cost: $242 million
TIFIA Assistance: up to $80 million secured loan
Credit Agreement: 2001 (expected)
Estimated Completion: 2005

With the City Council's February 27 decision to pursue a design-build approach for the project and FHWA's February 23 issuance of a Record of Decision (ROD), Reno and the TIFIA JPO are preparing to begin loan negotiations. The project will lower street-level rail tracks through downtown Reno into a trench with pedestrian and automobile traffic overpasses. (http://www.cityofreno.com/gov/retrac/)

CONTACTING US

The mailing address for the TIFIA Credit Program is:

TIFIA JPO
Federal Highway Administration (HABF-50)
Room 4310
400 Seventh Street, S.W.
Washington, DC 20590
202-366-2908 (fax)

Please e-mail your comments or inquiries regarding this newsletter or the TIFIA program to: Duane.Callender@fhwa.dot.gov.

Duane Callender
TIFIA Credit Program
US Dept. of Transportation
202-366-9644
202-366-2908 fax

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
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