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United States Department of Transportation United States Department of Transportation

Chicago Transit Authority Rail Fleet Replacement Project

CTA Map
Alternate Project Name
CTA Railcars, CTA Rail Fleet Replacement Project
Project Type
Public Transit
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Chicago Transit Authority (CTA)
Project Description

CTA seeks to provide rail riders with a safer and enhanced experience by investing over $772.5 million for the purchase of new rail cars to replace aging rolling stock.  The new rail cars will increase the size of the fleet to meet growing ridership demands, provide a smoother ridership experience, and improve passenger security with the inclusion of more up-to-date technology.  Modernizing the rail fleet will improve the reliability, comfort, and cost-effectiveness of transit service, making it more attractive and beneficial to the riding public.  Along with these benefits to riders, replacing old cars with new technologically-advanced vehicles will reduce certain costs to CTA relating to energy use and maintenance.

Project Details
TIFIA Assistance
$254.90M
Primary Revenue Pledge
Farebox Revenues
Project Cost
$254.90M
Fiscal Year Closed
FY2016
Duration/Status
Substantial completion of railcars financed by TIFIA is expected in early 2022.
Funding Sources
CTA Bonds: $482M

TIFIA Loan: $254.9M

Federal Transit Agency Formula Funds: $35.5M
Project Delivery/Contract Method
Procurement
Project Advisers/Consultants
To the CTA:

Financial Advisors – Public Financial Management, Inc.

Financial Advisors - A.C. Advisory, Inc.

Legal Advisors – Charity & Associates, P.C.

To USDOT TIFIA JPO:

TIFIA Financial Advisor – IMG Rebel

TIFIA Legal Advisor – Hawkins Delafield & Wood LLP
Project Lender
Bondholders, USDOT TIFIA
Credit Assistance Detail
Direct loan: $254.9 million. The TIFIA loan will be repaid through farebox revenues.
Financial Status
The TIFIA credit agreement was signed in March 2016. The TIFIA loan has two tranches which correspond to two series of the railcars comprising the Project. Each tranche will capitalize interest for approximately 4.5 years. Principal repayment will begin approximately 15 years from substantial completion (of delivery) of each series of cars and will amortize through a 34-year final maturity with the last tranche’s final maturity reached in 2056.
Innovations
AC Propulsion

Environmentally Friendly Refrigerant for Air Conditioning

Video Surveillance System

Ethernet Train Line and Remote Maintenance Information Upload
Application Details
Instrument Type
Direct Loan