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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Washington Metro Capital Improvement Program

Washington Metro Capital Improvement Program
Alternate Project Name
CIP; WMATA
Project Type
Public Transit
Financing Type
TIFIA
Status
Credit Agreement Executed
Sponsor/Borrower
Washington Metropolitan Area Transit Authority (WMATA)
Project Description

WMATA operates a rail and bus system serving the National Capital area. It is the fourth largest transit system in the U.S., and WMATA is the nation's second largest rail transit system, spanning 103 miles and incorporating 83 stations.

WMATA's capital improvement program (CIP) replaced vehicles and rehabilitated facilities and equipment on the rail and bus systems. Individual components of the CIP included procurement of new buses and rail cars; major maintenance and rehabilitation of electrical and mechanical systems, communications, and track and structures to improve system-wide performance; escalator and elevator rehabilitation and other station enhancements; parking lot improvements; and upgrades to several maintenance facilities.

Project Link
TIFIA Termination Resolution
Project Details
TIFIA Assistance
$600.00M
Primary Revenue Pledge
Interjurisdictional Funding Agreements
Project Cost
$2324.00M
Fiscal Year Closed
FY1999
Duration/Status
The Capital Improvement Program (CIP) is complete.
Funding Sources
Federal Grant Funds: $1.547B
Local Matching Funds: $560M
Grant Anticipation Notes (GANs): $217M
In addition to the sources detailed below, WMATA had a $600 million loan commitment (i.e., line of credit) from Lehman Commercial Paper, Inc. which was guaranteed by TIFIA. This loan commitment permitted WMATA to demonstrate adequate fiscal capacity under the terms of its funding agreement with local jurisdictions.
Project Delivery/Contract Method
Fixed price contract for rail car procurement.
Project Advisers/Consultants
To USDOT TIFIA JPO:

TIFIA Legal Advisor: Hawkins, Delafield & Wood, LLP
TIFIA Financial Advisor: Montague DeRose & Associates, LLC
Project Lender
Bondholders, USDOT TIFIA
Credit Assistance Detail
Loan guarantee: $600 million. The TIFIA loan guarantee permitted WMATA to obtain the loan commitment at no cost. The TIFIA guarantee backed repayments to Lehman Commercial Paper, Inc. should WMATA have drawn on the loan commitment and was unable to repay. Revenues that would secure a loan commitment draw, and thus the TIFIA guarantee, included the system's gross revenues as well as payments provided by local area governments to support the CIP.
Financial Status
TIFIA credit agreement signed on January 28, 2001. WMATA received a loan guarantee of up to $600 million from TIFIA in 1999 to finance $2.324 billion in total project costs from a program of projects designed to deal with deferred maintenance and to undertake improvements to the existing system over a series of subsequent years. WMATA successfully completed planned construction, rehabilitation, and other improvements for the CIP without drawing on the loan guarantee. With the expiration of the agreement in January 2010, this loan guarantee was retired.
Innovations
The first TIFIA project to utilize a loan guarantee to support a TIFIA project
Funding agreement with local jurisdictions
Application Details
Applicant
Washington Metropolitan Area Transit Authority (WMATA)
LOI Fiscal Year Received
FY1999
Application Received Fiscal Year
FY1999
Estimated Project Cost
$2324.00M
TIFIA Request
$600.00M
Instrument Type
Guarantee