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Chicago Transit Authority Rail Fleet Replacement Project

Project Type: 
Public Transit
Sponsor / Borrower: 
Chicago Transit Authority (CTA)
Credit Agreement Status: 
TIFIA Assistance: 
$254.9 million
Primary Revenue Pledge: 
Farebox Revenues
Project Cost Details: 

$772.5 million

Duration / Status: 

Substantial completion of railcars financed by TIFIA is expected in early 2022.

Fiscal Year Closed: 
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.

Funding Sources: 
  • CTA Bonds: $482M

  • TIFIA Loan: $254.9M

  • Federal Transit Agency Formula Funds: $35.5M

Project Delivery / Contract Method: 


Project Advisors / Consultants: 

To the CTA:

  • Financial Advisors – Public Financial Management, Inc.

  • Financial Advisors - A.C. Advisory, Inc.

  • Legal Advisors – Charity & Associates, P.C.


  • TIFIA Financial Advisor – IMG Rebel

  • TIFIA Legal Advisor – Hawkins Delafield & Wood LLP

Project Lender(s): 
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.
  • AC Propulsion

  • Environmentally Friendly Refrigerant for Air Conditioning

  • Video Surveillance System

  • Ethernet Train Line and Remote Maintenance Information Upload

Project Contacts: 

Donald Gismondi

General Manager of Capital Grants

Chicago Transit Authority

567 West Lake Street

Chicago, IL 60661

Phone # 312-681-4130


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