Project Profile: Chicago Transit Authority Rail Fleet Replacement Project

Chicago Transit Authoriy Rail Fleet Replacement Project

photo credit: Chicago Transit Authority

Location

Chicago, Illinois

Project Sponsor / Borrower

Chicago Transit Authority (CTA)

Program Areas

Project FinanceValue CaptureTIFIA

Mode

Heavy Rail

Description

CTA seeks to provide rail riders with a safer and enhanced experience by investing over $772.5 million for the purchase of new rail cars to replace aging rolling stock. The new rail cars will increase the size of the fleet to meet growing ridership demands, provide a smoother ridership experience, and improve passenger security with the inclusion of more up-to-date technology. Modernizing the rail fleet will improve the reliability, comfort, and cost-effectiveness of transit service, making it more attractive and beneficial to the riding public. Along with these benefits to riders, replacing old cars with new technologically-advanced vehicles will reduce certain costs to CTA relating to energy use and maintenance.

Cost

$772.5 million

Funding Sources

CTA Bonds - $482 million

TIFIA Loan - $254.9 million

Federal Transit Agency Formula Funds - $35.5 million

Project Delivery / Contract Method

Not applicable

Project Advisors / Consultants

To the CTA

  • Financial Advisors - Public Financial Management, Inc.
  • Financial Advisors - A.C. Advisory, Inc.
  • Legal Advisors - Charity & Associates, P.C.

To USDOT TIFIA JPO

  • TIFIA Financial Advisor - IMG Rebel
  • TIFIA Legal Advisor - Hawkins Delafield & Wood LLP
Lenders

Bondholders, USDOT TIFIA

TIFIA Credit Assistance

Direct Loan - $254.9 million.

The TIFIA loan will be repaid through farebox revenues.

Duration / Status

Substantial completion of railcars financed by TIFIA is expected in early 2022.

Financial Status

The TIFIA credit agreement was signed in March 2016. The TIFIA loan has two tranches which correspond to two series of the railcars comprising the Project. Each tranche will capitalize interest for approximately 4.5 years. Principal repayment will begin approximately 15 years from substantial completion (of delivery) of each series of cars and will amortize through a 34-year final maturity with the last tranche's final maturity reached in 2056.

Innovations
  • AC Propulsion
  • Environmentally Friendly Refrigerant for Air Conditioning
  • Video Surveillance System
  • Ethernet Train Line and Remote Maintenance Information Upload
Related Links / Articles

The 5000-series: A new generation of CTA 'L' Car

Contacts

Donald Gismondi
General Manager of Capital Grants
Chicago Transit Authority
Tel: (312) 681-4130
dgismondi@transitchicago.com

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