A federal judge's ruling could delay the construction of the Maryland Light Rail Purple Line P3 project. The ruling states that the project's ridership projections need to be recalculated in order to account for Metro’s deterioration and declining ridership.

According to sources, attorneys of Maryland Transit Administration (MTA) and the federal government said reconfiguring the ridership forecasts could push back the project by six months and unravel the terms and conditions of the public-private partnership contract.

MDOT initially stated that passenger revenues were expected to reach US$1.36 billion over the life of the 35-year agreement, with the fare starting at US$2. However, according to the judge's ruling, this previsions need to be reconsidered.

As we reported in late June, the consortium developing the Maryland Light Rail Purple Line P3 announced the achievement of the financial close for the project.

The financing included an US$875 million TIFIA loan from United States Department of Transportation and US$313 million of "Green Bond" designated Private Activity Bonds underwritten by JP Morgan and RBC Capital Markets. Supported by contracts backed by the investment grade credit ratings of the Maryland Commonwealth Transportation Trust Fund and Fluor Corporation, the bonds were sold at the lowest interest rates ever achieved in the US P3 market which generated significant savings for MTA. The construction of the line is expected to cost US$1.99 billion.

In early March, Maryland Department of Transportation (MDOT) selected Purple Line Transit Partners (PLTP), a consortium composed of Meridiam, Fluor Enterprises and Star America to develop the project on a design, build, finance, operate and maintenance (DBFOM) basis under a 35-year agreement.

Additionally, the consortium would contribute a total of about US$140 million in equity, of which Meridiam would provide 70% while Fluor Corporation and Star America would each provide 15%.

The Maryland Light Rail Purple Line P3 is a 16-mile light rail line that runs east-west inside the Capital Beltway between Bethesda in Montgomery County and New Carrollton in Prince George's County with 21 stations planned that will provide direct connections to Metrorail's Orange Line, Green Line and two branches of the Red Line, and the MARC Brunswick, Camden and Penn Lines.