Financial details emerge for Maryland´s purple line P3
The Light Rail (Purple Line) P3 project in Maryland, USA, will be financed through a TIFIA loan and private activity bonds (PABs).
In early March, 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.
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.
The construction of the line is expected to cost US$1.99 billion. The consortium would finance about half of this expense through an US$875 million low-interest federal (TIFIA) loan and US$330 million of tax-exempt private activity bonds (PABs).
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%.
According to MDOT, passenger revenues are expected to reach US$1.36 billion over the life of the agreement, with the fare starting at US$2.
The MDOT will also make fixed payments of U$150 million per year to Purple Line Transit Partners covering expenses of O&M, insurances, warranties, return on investment, etc.
The Maryland Government plans to approve the agreement April 6, reaching financial close in June.
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