TIFIA Credit Program Overview

	Transportation Infrastructure Finance and Innovation Act (TIFIA)
*Updated September 27, 2006*

Background on TIFIA

Strategic goal – to leverage limited Federal resources and stimulate private capital investment in transportation infrastructure by providing credit assistance in the form of direct loans, loan guarantees, and standby lines of credit (rather than grants) to projects of national or regional significance.
Key objectives
- Facilitate projects with significant public benefits
- Encourage new revenue streams and private participation
- Fill capital market gaps for secondary/subordinate capital
- Be a flexible, "patient" investor willing to take on investor concerns about investment horizon, liquidity, predictability and risk
- Limit Federal exposure by relying on market discipline

Major requirements
- Large surface transportation projects ($50M generally, $15M for intelligent transportation systems – ITS)
- TIFIA contribution limited to 33 percent
- Senior debt must be rated investment grade
- Dedicated revenues for repayment
- Applicable Federal requirements (Civil Rights, NEPA, Uniform Relocation, Titles 23/49)
- Public or private highway, transit, rail and port projects are eligible to apply for TIFIA assistance
Application process - project sponsors must submit proposals, including financial plans, to USDOT for consideration.

Statutory Selection Criteria Weighting (percentage amounts)

Private Participation	20.0%
Environmental Impact	20.0%
National or Regional Significance	20.0%
Project Acceleration	12.5%
Credit Worthiness	12.5%
Use of New Technologies	5.0%
Reduced Federal Grant Assistance	5.0%
Consumption of Budget Authority	5.0%

Program Implementation: Selection & Funding of a TIFIA Project

TIFIA Documentation Requirements

TIFIA Program Fees

The TIFIA JPO will require each applicant to pay a non-refundable application fee of $30,000.
In addition each borrower will be required to pay a credit processing fee equal to a portion of the costs incurred by the TIFIA JPO in negotiating the credit agreement. This fee will typically range from $100,000- $300,000.
Borrowers will also be required to pay a $11,000 loan servicing fee annually.

TIFIA Projects

(TIFIA Instruments in Millions)

Map of the US showing 12 projects. Total TIFIA Assistance: $3.2 Billion. Total Project Investment: $12.7 Billion

TIFIA Portfolio

(In Millions)

TIFIA Number	Project	Project Type	Project Cost	Instrument Type	Credit Amount	Credit Rating		Primary Revenue Pledge
TIFIA Number	Project	Project Type	Project Cost	Instrument Type	Credit Amount	Senior debt obligations	TIFIA loan	Primary Revenue Pledge
Active Credit Agreements
19991002b	Miami Intermodal Center RCF	Intermodal	a	Direct Loan	170.000	*	BBB	User Charges
19991005	Washington Metro CIP	Transit	2,324	Guarantee	600.000	A-	BBB	Interjurisdictional Funding Agreements
20011001	Central Texas Turnpike	Highway	3,700	Direct Loan	916.760	BBB+	BB	User Charges
20031002	SR 125 Toll Road	Highway	629	Direct Loan	140.000	BBB-	BB+	User Charges
20051001	183 A Toll Road	Highway	331	Direct Loan	66.000	BBB-	BB	User Charges
20051002	LA-1	Highway	247	Direct Loan	66.000	A-	BB	User Charges
20061001	Warwick Intermodal Station	Intermodal	182	Direct Loan	42.000	BBB+	BBB-	User Charges
Total					$2,000.760
Commitments Awaiting Credit Agreements
19991004a	Moynihan Station	Passenger Rail	800	Direct Loan	140.000			Lease Income
19991004b	Moynihan Station	Passenger Rail	b	Line of Credit	20.000			Lease Income
Total					$160.000
Retired Credit Agreements
19991006	Tren Urbano (PR)	Transit	2,250	Direct Loan	300.000	BBB+	BBB-	Tax Revenues
2001003	Cooper River Bridge	Highway	668	Direct Loan	215.000	BBB-	BBB-	Infrastructure Bank Loan Repayments
20001004	Staten Island Ferries	Transit	482	Direct Loan	159.225	A+	A+	Tobacco Settlement Revenues
20011002a	Reno Rail Corridor	Intermodal	280	Direct Loan	50.500	BBB	BB	Room and Sales Tax
19991002a	Miami Intermodal Center FDOT	Intermodal	$1,349	Direct Loan	$269.076	*	A-	Tax Revenues
Total					$993.801
Total All Categories			$13,242		$3,154.561

Note: Project costs and credit ratings as of TIFIA financial closing

Footnotes

^a Project Cost included in TIFIA Number 19991002a
^b Project Cost included in TIFIA Number 19991004a
^* TIFIA is the only project debt

TIFIA JPO Organizational Framework

TIFIA Oversight: Credit Instrument Life Cycle

Construction Oversight and Performance Monitoring

Design / Construction

On-site inspections
Periodic meetings
Disbursement approvals
Project acceptance

Operations/Post Construction

Performance reporting
Revenue realization
Change reporting
Compliance with credit agreement

Credit Instrument Life Cycle. A half circle arch starting at Financial Closing, thru Construction Risk, mid point: Substantial Completion, continues thru Performance Risk Exposure decreases over time), and ending at Final Maturity.

Contact

TIFIA Joint Program Office (HCF-50)
U.S. Department of Transportation
Room 4310
400 Seventh Street, SW
Washington, DC 20590

fax: (202) 366-2908

http://tifia.fhwa.dot.gov

Mark Sullivan, Chief	mark.sullivan@fhwa.dot.gov	202 366-5785
Robert C. Brown, Capital Markets Advisor	robert.c.brown@fhwa.dot.gov	202 366-6813
Duane Callender, Project Finance Coordinator	duane.callender@fhwa.dot.gov	202 366-9644
Cheryl Jones, Project Finance Advisor	cheryl.jones@fhwa.dot.gov	202 366-0317
Suzanne Sale, Senior Financial Advisor	suzanne.sale@fhwa.dot.gov	602 379-4014