Financial Plans Process
As indicated in the FHWA Major Project Deliverable Timeline, the Initial Financial Plan (IFP) of a project is prepared as early in the project development process as practical, which is usually when initial cost estimates for the project become available in the NEPA process. Submittal processes and requirements of the Financial Plan vary depending on the scale of and anticipated financial sources for the project, as further explained below.
For Major Projects, the Project Sponsor is responsible for the submittal of the Initial Financial Plan to the FHWA Division Office for approval. The submittal should occur before the start of construction. Once the Initial Financial Plan is submitted and approved by the FHWA Division Office with concurrence of the FHWA Major Projects Team, the first authorization of Federal aid funding for project construction may occur.
Financial Plans for Major Projects are updated annually, in accordance with the scheduled timing specified in the Initial Financial Plan, and submitted to FHWA until construction of the project is completed. Annual updates are approved by the FHWA Division Office with concurrence of the FHWA Major Projects Team.
Project with Costs From $100 up to $500 million
Projects with costs in the $100-$500 million dollar range are also required to have Financial Plans and Annual Updates prepared by the project sponsor. Per the Major Project Financial Plan Guidance, the content in the Financial Plans for such projects are expected to address the same information as Financial Plans for Major Projects. Financial plans for these projects do not require FHWA approval, but are subject to the agency's review upon request.
Transportation Infrastructure Finance and Innovation Act (TIFIA) Projects
The Build America Bureau's Credit Programs Office requires that the project sponsor and/or TIFIA loan borrower submit a financial plan that meets the requirements of the loan evaluation process and loan agreement.
For Major Projects, if the project sponsor and/or TIFIA loan borrower chooses to submit a financial plan and annual updates that meet both the FHWA Major Projects and TIFIA loan requirements, the FHWA Division Office approves the initial financial plan and annual updates, with the concurrence of FHWA Major Projects Team and coordination with the Credit Programs Office.
For additional information on TIFIA project-specific requirements and submittal processes, please refer to the TIFIA Project Oversight and Credit Monitoring Guidelines.