For Immediate Release
May 1, 2014
Airports Authority Statement Regarding
TIFIA Loan Approval
A statement from the Metropolitan Washington Airports Authority regarding the approval by the U.S. Department of Transportation of a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan for the Dulles Corridor Metrorail Project. The Airports Authority applied for the loan in conjunction with its local partners on the Metrorail Project, Fairfax County and Loudoun County.
“The approval of a federal low-interest TIFIA loan for the Dulles Corridor Metrorail Project is a victory for users of the Dulles Toll Road, whose toll payments help fund construction of the Silver Line extension of the Washington region’s Metrorail public transit system. The Airports Authority’s objective has always been to keep tolls on the Dulles Toll Road as low as possible, and the TIFIA loan is a major factor in meeting that objective.
“Thanks to the favorable interest rates the loan provides, as well as $300 million committed by the Commonwealth of Virginia, the Airports Authority will be able to hold tolls at current levels through 2018 and to limit future toll increases.
“Today’s announcement is the result of a collaborative effort. We appreciate the support and dedication of Northern Virginia’s Congressional delegation, legislators and officials in Richmond and the numerous local elected, business and community leaders, all of whom have helped make this day possible.
“The Airports Authority will work closely with the Department of Transportation and our project partners to finalize the remaining loan agreement, and we look forward to closing on the loan in the coming weeks – even as we work to identify additional cost savings that will benefit Toll Road users.”
A breakdown of expected toll rates, including the present-day value for rates in future years, is included below. A full presentation about Silver Line Metrorail project financing can be found here.
Comparison of Potential Dulles Toll Road Trip Cost (Mainline + Ramp Toll)
COV = Commonwealth of Virginia ($300 million contribution)
PV = Present Value at 3%
Since jointly submitting a letter of interest in October 2012, the Metropolitan Washington Airports Authority worked diligently with its partners in Fairfax and Loudoun counties and the U.S. Department of Transportation to secure a TIFIA loan, leading to today’s announcement.
Additionally, at its monthly meeting in April, the Airports Authority board of directors authorized issuance of $450 million Dulles Toll Road Revenue Refunding Bonds. With the approval of the TIFIA loan and this round of bonds, which are guaranteed by a pledge of future revenue generated by tolls on the Dulles Toll Road, the entire portion of the Dulles Toll Road share of the Silver Line Project will be financed.