Summer greetings to all! We encourage you to share this newsletter with your associates throughout the transportation finance community.
On Friday, June 7, staff of the USDOT delivered the Report to Congress regarding the TIFIA Credit Program. The report fulfills the Congressional requirement to summarize, within four years of the June 9, 1998 enactment of TEA 21, the financial performance of projects assisted by TIFIA and to discuss alternatives for achieving the program objectives in the future.
As of March 31, 2002, the USDOT has selected 11 projects, representing $15.4 billion in transportation investment, to receive TIFIA credit assistance. The TIFIA commitments total nearly $3.6 billion in credit assistance at a budgetary cost of about $190 million. The USDOT has received 32 letters of interest and 15 applications from project sponsors resulting in the 11 selections. All major categories of eligible projects - highway, transit, passenger rail and multi-modal - have sought and received credit assistance. The TIFIA credit assistance ranges in size for each project, from $73.5 million to $800 million, mostly in the form of direct Federal loans from the USDOT to the project sponsors.
Already limited by statute to 33 percent of total eligible project costs, actual TIFIA assistance has averaged 23 percent of project costs. Including grant assistance, total Federal investment in TIFIA projects amounts to 43 percent of total costs. Investments from other government and private sources comprise the remaining 57 percent.
The 42-page Report to Congress reviews the policy objectives of TIFIA and implementation of the program by the USDOT during its first four years. It analyzes the TIFIA project portfolio in terms of modal, geographic and financial diversity. The report reviews the 11 TIFIA project commitments in light of the program's stated objectives and additional benefits identified by project sponsors. The report also includes a discussion of credit issues encountered during loan negotiations. Finally, as directed by Congress, the report reviews alternatives for the TIFIA program administration: continuing the program under USDOT, establishing a government corporation or government-sponsored enterprise, or phasing out the program and relying on the capital markets.
As stated in the Report to Congress, the USDOT believes that a limited number of large surface transportation projects each year will have a need for the types of credit instruments offered under TIFIA. The program continues to evolve as its project portfolio grows, and continued Congressional guidance and dialogue during this evolutionary period offers mutual benefits.
The mailing address for the TIFIA Credit Program is:
Federal Highway Administration (HABF-50)
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.
TIFIA Credit Program
US Dept. of Transportation