Financing Surface Transportation in the United States: Forging a Sustainable Future—Now! (2012) / Chapter Skim
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Pages 13-20
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From page 13... ...
was conducted at a critical crossroad for transportation finance amid a global economic downturn and the uncertainties that lay ahead. With Congress having had to transfer money from the general fund into the Highway Trust Fund for the first time in its history and with the reauthorization of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users still pending, transportation professionals gathered to participate in thought-provoking discussions, to explore revenue generation alternatives, and to help identify research topics to advance the knowledge and understanding of infrastructure needs.
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From page 14... ...
The FHWA Office of Asset Management developed a number of benefit–cost analysis tools including the Highway Economic Requirements System, the National Bridge Investment Analysis System, and the Transit Economic Requirements Model. Benefit–cost analysis procedures were included in a 2009 notice of proposed rulemaking for the TIFIA credit program that was subsequently withdrawn, and most recently they have been integrated as a component of the Transportation Investment Generating Economic Recovery grant program.
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From page 15... ...
to establish norms and procedures for completing reviews of proposed motorway improvements. SACTRA examined issues including induced traffic, environmental impact projections, and wider assessments of the economic impacts of motorway improvement projects.
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Emerging Trends for Raising Capital: New Forms of Tax-Preferred Debt Lisa Fenner of KPMG Infrastructure Advisory reviewed two new federal debt tools that might allow the financing of the Leverage Parish toll road project: BABs and tax credit bonds. BABs were authorized by Congress as part of the American Recovery and Reinvestment Act (ARRA)
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From page 17... ...
If BABs were used, the Leverage Parish hypothetical toll project's debt capacity would be $255 million on the basis of a 35 percent subsidy, or $241 million with a 28 percent subsidy, assuming an A-category bond rating, a 30-year maturity, and a debt service coverage ratio of 1.3. With qualified tax credit bonds, the debt capacity of the project would increase to $307 million on the basis of a similar rating and debt service coverage ratio.
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From page 18... ...
Availability Payment–Based Concessions Michael Parker of Jeffrey Parker & Associates, Inc., discussed the use of availability payment–based concessions in the United States and their possible application to the toll facility in Leverage Parish. To date, only two availability payment concessions had reached financial close in the United States: the Port of Miami Tunnel and the I-595 Improvements Project, including high-occupancy toll lanes in Fort Lauderdale, Florida.
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From page 19... ...
If a state treats availability payments like operating costs, then the rating agencies might do the same. Would an availability payment contract with a 30-year concession period be less risky than a 50-year contract?
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