TIFIA Loan of $874.6 Million for the Maryland Purple Line Project

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Posted: Monday, June 20, 2016 9:56 pm

WASHINGTON, D.C. -- U.S. Department of Transportation Secretary Anthony Foxx announced a Transportation Infrastructure Finance and Innovation Act loan of $874.6 million to Purple Line Transit Partners, LLC, for implementation of the Maryland Purple Line. The TIFIA loan will support the construction of the light rail line connecting Montgomery and Prince George’s Counties, Md.

"The Washington metropolitan region is one of the most congested areas in the country, and viable transportation alternatives are needed to accommodate a growing population," said Secretary Foxx. "When completed, the Maryland Purple Line will connect residents in Montgomery and Prince George’s Counties, Md., with improved access to jobs, education, and medical care and, overall, will help improve the quality of life."

The Maryland Purple Line Project is a 16.2 mile, 21-station, east-west light rail line that will connect numerous communities in Maryland, from Bethesda in Montgomery County to New Carrollton in Prince George’s County. The corridor is located inside the Capital Beltway near Washington, D.C., in a densely populated area with commercial, mixed use and residential development. The line will connect major activity centers in Bethesda, Silver Spring, Takoma-Langley Park, College Park, and New Carrollton with communities along the alignment, Washington Metropolitan Area Transit Authority’s Red, Green and Orange Metrorail lines, all three Maryland Area Regional Commuter rail lines and Amtrak’s Northeast Corridor line. Although the project will provide direct connections with WMATA, MARC and Amtrak, it will remain physically and operationally separate.

In addition to the TIFIA loan of $874.6 million, the U.S. Department of Transportation’s Federal Transit Administration is working with the Maryland Transit Administration on a Full Funding Grant Agreement that would provide $900 million from FTA’s Capital Investment Grant Program. In addition, MTA will use $36 million of FTA Section 5307 Urbanized Area Formula Grant funds for the project. FTA anticipates that the FFGA will be signed this summer.

"The Federal Transit Administration is proud to help provide a new transit option for Maryland residents in one of the most highly populated corridors in the nation," said FTA Acting Administrator Carolyn Flowers. "The Purple Line will help residents access one of the state’s largest job centers as well as its flagship state university without having to drive on heavily congested roads. Moreover, the Purple Line’s unique public-private partnership allows the state of Maryland to better leverage federal funding."

The Maryland Department of Transportation will be the owner of the project and its selected private partner, Purple Line Transit Partners, will implement the project on a design-build-finance-operate-maintain basis. The Purple Line project was procured as a public-private partnership under a concession agreement that was executed on April 7, 2016, and expires approximately 30 years after substantial completion, which is anticipated in March 2022.

SOURCE: U.S. Department of Transportation

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