USDOT approves TIFIA loan for Tappan Zee bridge

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
USDOT approves TIFIA loan for Tappan Zee bridge Tappan Zee Bridge

The Tappan Zee Bridge replacement project was approved Thursday for a $1.6 billion Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, a development that allows officials to finalize plans for toll increases that will pay for the $3.9 billion effort.

The loan was the largest of its kind the U.S. Department of Transportation has ever awarded.

Thursday's announcement comes more than a year after New York State Thruway Authority submitted a $1.58 billion loan request to the TIFIA, program. It also comes days after Standard & Poor's gave the New York State Thruway Authority an A long-term bond rating, down from the A+ rating it had.

The downgrade is probably related to the uncertainty over how much tolls will increase to pay for the replacement project. The Thruway Authority will issue $2.4 billion in bonds to cover Tappan Zee replacement costs but a more detailed financial plan for the project has not been released.

The TIFIA loan was approved "following a thorough assessment" that included a full creditworthiness review, the DOT said in a statement.

State officials said the interest rate for the loan will be set when the agreement is finalized in December.

The consortium composed by Fluor Enterprises, Inc., American Bridge Company, Granite Construction Northeast, Inc., and Traylor Bros., Inc., was selected for the multi-billion dollar, design-build contract for the new Tappan Zee Hudson River Crossing Project in December 2012.

List of country news

Country news

  • November 06, 2013

    Mitsui acquires stake in New York Power plant

    Mitsui & Co., Ltd. has announced that it has acquired a 20.6% interest in the Astoria I power generation project in New York from GDF SUEZ Energy North America, Inc. The Project is valued at approximately US$1 billion. Read more
  • November 07, 2013

    Maryland approves $2.2 billion light rail P3 project

    The state's Board of Public Works unanimously approved the Maryland Department of Transportation's plan to seek a public-private partnership for a 16-mile and 21 stations Purple Line. Read more
  • November 11, 2013

    Maryland issues RFQ for $2.2 billion light rail P3 project

    The state is applying for a $732 million TIFIA loan from the federal government. MDOT also plans to apply for Private Activity Bonds (PAB) funding for the project. A team of private companies would contribute $500 million to $900 million toward the Purple Line. Read more
  • November 12, 2013

    Kiewit and Macquarie close financing for Goethals Bridge

    Port Authority Executive Director Pat Foye, said:"Reaching financial close is another significant milepost on our journey to completing the region's first true surface transportation public-private partnership in the northeast region. Governors Cuomo and Christie have tasked us with coming up with creative solutions to rebuild our critical infrastructure, and we believe this project will serve as an example for building major transportation infrastructure in the northeast while leveraging private capital and expertise."U.S. Transportation Secretary Anthony Foxx on November 5th announced a Transportation Infrastructure Finance Innovation Act (TIFIA) $474 million loan for the project. Additionally, the New Jersey Economic Development Authority on behalf of NYNJ Link has issued $457 million series 2013 tax-exempt private activity bonds (PABs). Fitch Ratings and Standard Poor's Ratings assigned a 'BBB-' rating to the borrower in both cases. Read more
  • November 14, 2013

    RFQ out for Illinois and Indiana portions of Illiana Expressway

    The Illinois Department of Transportation (IDOT) on November 8th released a Request for Qualifications (RFQ), seeking qualifications by private industry partners to design, build, finance, maintain and operate the Illinois portion of the Illiana Expressway. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.