Examples include $917 million loan for the Central Texas Turnpike, $215 million loan for the Cooper River Bridge, $600 million loan guarantee for the Washington DC Metro Capital Improvement Program, $159 million loan for the Staten Island Ferries and Ferry Terminals, $439 million in two loans for the Miami Intermodal Center.
The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.
For FY 2007, as of March 31, 2007, one project loan in the amount of $516 million has been approved.
Uses and Use Restrictions
Highway, transit, rail, freight facilities, and certain port projects may receive credit assistance through the TIFIA program.
The TIFIA statute requires all projects receiving TIFIA assistance to comply with 23 U.S.C.
(for highway projects) and chapter 53 of 49 U.S.C.
(for transit projects), as applicable.
In addition, all projects receiving TIFIA assistance must comply with generally applicable Federal laws and regulations, including title VI of the Civil Rights Act of 1964, the National Environmental Policy Act of 1969, and the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
Public or private entities seeking to finance, design, construct, own, or operate an eligible surface transportation project may apply for TIFIA assistance.
Examples of such entities include state departments of transportation; local governments; transit agencies; special authorities; special districts; railroad companies; and private firms or consortia that may include companies specializing in engineering, construction, materials, and/or the operation of transportation facilities.
Public or private entities seeking to finance, design, construct, own, or operate an eligible surface transportation project. Examples include state departments of transportation; local governments; transit agencies; special authorities; special districts; railroad companies; and private firms or consortia that may include companies specializing in engineering, construction, materials, and/or the operation of transportation facilities.
All applicants must demonstrate relevant experience, strong qualifications, a sound project approach, and a project that can demonstrate financial feasibility. Applicants also must meet various Federal standards for participation in a Federal credit program. For example, applicant may not be delinquent or in default on any Federal debts. Such requirements will be specified in the contractual documents between the DOT and each applicant.
Aplication and Award Process
To begin the application process, an applicant should submit to the DOT a Letter of Interest, not to exceed 10 pages.
A Letter of Interest template can be found at http://www.tifia.fhwa.dot.gov/; it identifies the specific information that must be provided.
The DOT requests that applicants submit the Letter of Interest by attaching it via email to TIFIACredit@dot.gov.
This letter serves to familiarize the DOT with basic information relating to the project and the applicant.
It also permits the DOT and the applicant to ensure that the project meets the basic eligibility requirements for participation.
This program is excluded from coverage under E.O.12372.
Upon receiving the DOTs notification that the project meets the basic eligibility criteria, the applicant may submit an application. An application fee, currently $30,000, must be submitted with the proposal. The application form is available on the TIFIA web site at http://tifia.fhwa.dot.gov/.
Final approval is granted by the Secretary of Transportation.
23 U.S.C. 601-609; 49 CFR 80.
Range of Approval/Disapproval Time
After a complete application has been filed with all supporting documents, processing time is approximately 60 days. The average time to execute a TIFIA credit agreement from the date of Secretarial approval in FY 2006 was 4.3 months.
Formula and Matching Requirements
The principal amount of the requested credit assistance must not exceed 33 percent of eligible project costs. Applicants should calculate and represent all costs, including both eligible project costs and the credit assistance request, on a cash (year-of-expenditure) basis.
Length and Time Phasing of Assistance
The maximum maturity of all TIFIA credit instruments is 35 years after a project's substantial completion.
Post Assistance Requirements
Each credit agreement between the DOT and a borrower will specify the types of on-going documentation required by the DOT and the frequency of such information requests.
The credit agreement will also authorize the DOT to commence increased monitoring and reporting,as may be necessary, to ensure the continued credit quality of the project and minimize the government's risk.
See Index of Current Regulations, Federal Highway Administration.
Documentary evidence that may be requested for each project includes: audited financial statements, updated budget and cash flow projections, audit reports, sources and uses of funds, coverage ratios, project schedules, operating statistics, and management updates (within no more than 180 days following the recipient's fiscal year-end). In addition, the credit agreement obligates the borrower to provide the DOT an annual update to the project's financial plan in accordance with specified requirements. Each borrower will be required to give notice to the DOT of material events, including litigation, which could affect project development or the credit quality of the project.
FY 07 $782,000,000; FY 08 est $2,391,000,000; FY 09 est not available.
Range and Average of Financial Assistance
Historically, loans have ranged from $42 million to $917 million.
Regulations, Guidelines, and Literature
See TIFIA website at http://tifia.fhwa.dot.gov/ Legislation and Regulations, Program Guidance and application Materials, and Background Reference.
Regional or Local Office
Room 4310, 400 7th Street, S.W., Washington, DC 20590.
Criteria for Selecting Proposals
The DOT has assigned specific weights to the selection criteria, as follows: National or Regional Significance (20 percent); Private Participation (20 percent); Environment (20 percent); Project Acceleration (12.5 percent); Creditworthiness (12.5 percent); Use of Technology (5 percent); Consumption of Budget Authority (5 percent); Reduced Federal Grant Assistance (5 percent).