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Title: CASE STUDIES OF ALTERNATIVE APPROACHES TO PROJECT FINANCING, ACT II
Accession Number: 00818794
Record Type: Component
Availability: Find a library where document is available Abstract: Until recently, innovative financing techniques have seen relatively limited use for "new start" transit projects. Now, however, transit properties are starting to employ the GARVEE concept, whereby they pledge projected federal transit revenues to pay debt service. The Hudson-Bergen light rail project in New Jersey provides an example of this evolution, first pledging formula funds under the Section 5307 formula program, then Section 5309 fixed-guideway modernization funds (which are essentially distributed by formula), and finally discretionary funds under the 5309 new start process. An 8.9-km (5.5-mi) light rail extension to the Portland, Oregon, airport offers an example of another way of financing transit investment through nontraditional means. By bringing together a broad-based public-private partnership, sponsors of this bond-financed project were able to access a wide range of revenue sources, including airport passenger facility charges, tax increment funding, and private contributions that will ultimately be recouped through another key element of the overall project--a 120-acre real-estate development. Looking beyond these specific projects, the final speaker in this session noted that private-public partnerships and design/build/operate/maintain contracts often involve a transfer of risk for cost overruns, performance, and schedule from the public sector to the contractor. This action makes it incumbent on the public agency to ensure that its private partners have the financial capacity to bear the specified risks. Model guidelines, including appropriate thresholds and disclosure and surety requirements, could help public agencies zero in on salient indicators of financial capacity, reduce the private sector's cost to prepare bids, and ensure that risk exchanges occur not only in theory but also in practice.
Supplemental Notes: Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
Monograph Title: SECOND NATIONAL CONFERENCE ON TRANSPORTATION FINANCE, SCOTTSDALE, ARIZONA, AUGUST 20-24, 2000 Monograph Accession #: 00818781
Language: English
Corporate Authors: Transportation Research Board 500 Fifth Street, NW Authors: Greene, SWalsh, JPARKER, JPagination: p. 104-109
Publication Date: 2001
Conference:
Second National Conference on Transportation Finance
Location:
Scottsdale, Arizona ISBN: 0309072107
Media Type: Digital/other
TRT Terms: Uncontrolled Terms: Subject Areas: Economics; Finance; Transportation (General); I10: Economics and Administration
Files: TRIS, TRB
Created Date: Oct 8 2001 12:00AM
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