Master Credit and Emerging Project Agreements for TIFIA and RRIF
- The Fixing America’s Surface Transportation (FAST) Act authorizes both the Transportation Infrastructure Finance and Innovation Act of 1998 (TIFIA) program and the Railroad Rehabilitation & Improvement Financing (RRIF) program to provide contingent commitments of credit assistance for a program of related projects.
- While these contingent commitments are not an obligation and do not guarantee an issuance of financial assistance from the Federal government, they represent an agreement between the Department of Transportation (DOT or Department) and a project sponsor for potential credit assistance and will include the negotiation of certain terms and conditions of that potential credit assistance.
- Contingent commitments of credit assistance will be offered under this authority pursuant to a Master Credit Agreement (MCA). The Department will also offer technical assistance for certain projects under an Emerging Projects Agreement (EmPA).
- The use of these two new agreements will help important infrastructure projects at different phases of development reach project completion.
Master Credit Agreement
- The Master Credit Agreement will provide predictability and efficiency for planning purposes for projects with an identified source of revenue and solidified schedule for construction.
- The Department and project sponsor will front-load a significant portion of the negotiation of the specific terms and conditions for the contingent credit assistance.
- To be eligible for a Master Credit Agreement, each project within an agreement must be an eligible project under the statutory requirements of the relevant credit program.
- Master Credit Agreements will incorporate a list of eligible projects, the maximum amount of credit assistance available and a period of time for when the funds will be available.
- The individual project loans under the Master Credit Agreement are contingent upon execution of satisfactory documentation with the Department and satisfaction of certain terms and conditions.
Emerging Projects Agreement
- The Emerging Projects Agreement will provide high-priority projects in the early stages of development with technical assistance in the development and planning of the projects.
- To be eligible for an Emerging Projects Agreement, the project must be an eligible project under the statutory requirements of the relevant credit program; have estimated Project Program costs no less than $5 billion; and project construction is expected to begin within 5 years.
- The Emerging Projects Agreement will establish a framework for the provision of technical assistance by the Department to the project sponsor prior to the project sponsor’s submission of an application for credit assistance to the relevant credit program; describe the technical assistance to be provided by the Department; and set forth any known requirements that must be met in order for the project sponsor to submit an application for credit assistance.
Updated: Wednesday, February 1, 2017