Wednesday, May 2, 2012

USDOT Announces TIFIA Loan Finalists

Transportation Secretary Ray LaHood has announced the five finalist projects whose loan guarantee applications will be considered this year under the federal Transportation Infrastructure Finance and Innovation Act. TIFIA is a program of federal government loan guarantees designed to provide incentives and lower interest rates for surface transportation projects which will generate tolls, user fees or other revenues to pay back investors over the life of the project. The five finalists are a $1.5 billion package of new toll roads and non-toll lane upgrades on Interstate 35W in Tarrant County, Texas; a $1.3 billion extension and additional lane widening for State Route 91 in Orange and Riverside Counties in California; a $960 million replacement for the Gerald Desmond Bridge in Long Beach; a $927 million conversion of high occupancy freeway lanes to toll lanes in northern Virginia; and a $140 million project to add bus rapid transit lanes to U. S Route 36 in Colorado.

The $4.83 billion in loan guarantees on the final projects represents a little over 37% of the $13 billion in guarantees sought on 26 proposals submitted for TIFIA guarantees in the 2012 round. According to Secretary LaHood, each dollar of federal subsidy leverages $10 in loan value under the TIFIA program.

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