On Nov. 3, 2011 the TIFIA Joint Program Office announced availability of limited funding for TIFIA credit assistance for fiscal year 2012 and invited submission of letters of interest (LOIs) by Dec. 30, 2011. While we are aware of no official announcement, sources inform us that the TIFIA JPO received LOIs from 26 project sponsors seeking over $13 billion in credit assistance to finance almost $36 billion in new infrastructure investment.
This current interest continues a three-year trend in strong demand for TIFIA credit assistance, and, so far anyway, a limited amount of available subsidies. The TIFIA program only has $110 million in TIFIA subsidies available for fiscal year 2012, capable of supporting approximately $1.1 billion in credit assistance. According to our math, the LOIs represent demand of almost twelve times the available appropriation for the program.
The pending Senate federal reauthorization bill would increase annual TIFIA subsidies to $1 billion. Reports indicate that the House Transportation and Infrastructure Committee will include the same sharp increase in the TIFIA program in its reauthorization bill.
A multimodal working group is evaluating the LOIs. Transportation Secretary Ray LaHood reportedly wants decisions issued on the LOIs in March or April. Unfortunately, once again the vast majority of projects will be turned down or invited to apply for far less support than requested.
In over 41 years with the Firm, Fred Kessler has gained national recognition as a guiding force for public agencies in the field of transportation public-private partnerships (P3s). Clients benefit from his vast experience with ...
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