State officials will be forced to look elsewhere as they seek to finance the new, $5.2 billion Tappan Zee Bridge after the U.S. Department of Transportation turned down the state”™s letter of intent to apply for a federal TIFIA loan.
The U.S. DOT received 26 letters of interest seeking more than $13 billion in credit assistance for the current round of financing under the Transportation Infrastructure Finance and Innovation Act, or TIFIA, program.
Of those, five applicants requesting a total of $1.625 billion in direct loans were told last month that their respective projects had been selected as finalists for TIFIA assistance.
The New York State Thruway Authority in December submitted its official request to apply for $2 billion in TIFIA financing to help pay for the new Tappan Zee Bridge.
The state initially estimated the cost of construction at $5.2 billion, but officials have said since that the cost could range from less than $5 billion to more than $6 billion.
The competition for TIFIA assistance is fierce since it generally comes in the form of low-interest, long-term loans payable over up to 35 years.
Among the 26 letters of interest, the Thruway Authority”™s loan request was the second largest and the bridge”™s estimated total cost topped the list of transportation infrastructure projects applying for TIFIA loans.
The U.S. DOT emphasized that the Thruway Authority”™s loan request was not rejected; rather, limited funding for the TIFIA program meant financial assistance for the fiscal year 2012 round of funding was limited to smaller projects.
“We are currently compiling a reserve list of projects, including the Tappan Zee Bridge, that will be expedited if TIFIA receives more funding, but this depends on Congress providing the money,” said U.S. DOT spokesman Bill Adams. “We are hopeful that Congress will provide additional funding.” He added that applicants who were not selected as finalists for the current round of financing could reapply in the fall.
Thruway Authority Executive Director Thomas Madison remained confident that the state would be able to secure federal financing for the bridge in the future.
“We are very pleased that the Tappan Zee has been placed on a short list of six projects that will undergo an expedited review process for funds immediately after federal transportation reauthorization,” Madison said in a statement. “We understand that in light of current financing constraints, the U.S. DOT has prioritized smaller projects that are further along in development and required immediate financing in this first round.”
State transportation officials have yet to disclose any other plans for financing the bridge.
The lack of definitive financing plans, coupled with the most recent failure to secure TIFIA assistance, is not cause for concern at this point in time, said Ross J. Pepe, president of the Construction Industry Council of Westchester & Hudson Valley Inc. “I don”™t believe it is a serious blow to the bridge”™s prospects of going forward,” he said. “We believe the money is there for the job.”
The Thruway Authority maintained that this setback would not affect the project”™s timeline.
The five projects selected as finalists for TIFIA assistance include bridge replacement and highway-related projects in California, Colorado, Texas and Virginia.
