The Purple Line Transit Partners announced yesterday that the organization had reached “financial close” with the new design-build contractor, Maryland Transit Solutions, for completion of the delayed construction.
“Financial close” means the funding for construction and future operations and maintenance, and full-scale construction can start again later this spring with goal of completing construction by fall 2026.
“Our rock-solid partnership with MDOT MTA is the reason we’re able to make today’s announcement, which brings the Purple Line an important step closer to serving the people of Maryland,” Jane Garvey, PLTP chairman, said in a press release. “Leading up to today’s milestone, ‘Team Purple Line’ has spared no effort to ensure the restart of construction hits the ground running.”
According to the release, “The financing arranged by PLTP for the 40-year agreement to finance, design, build, operate and maintain the Purple Line, supported by annual payments by MDOT MTA during operations, is as follows:
- $1.76 billion: Transportation Infrastructure Finance and Innovation Act loan from the U.S. Department of Transportation to PLTP, replacing and restructuring the original TIFIA loan;
- $643 million: Private Activity Bonds issued to PLTP; and
- $293 million: Total PLTP shareholder equity.”
The Washington Post reported the total cost of the construction project has risen to $3.4 billion, driven by “changes in the project’s “risk profile” and the pandemic’s effects on insurance rates, labor shortages and materials.”
Earlier this year, the state’s Board of Public Works unanimously approved a modified Purple Line Public-Private Partnership Agreement yesterday that will allow Maryland Transit Solutions to complete the line.
MTA photo