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Tren Urbano

Tren Urbano
Project Type: 
Public Transit
Sponsor / Borrower: 
Puerto Rico Highway and Transportation Authority (PRHTA)
Credit Agreement Status: 
Retired/Sold
TIFIA Assistance: 
$300 million
Primary Revenue Pledge: 
Tax Revenues
Project Cost Details: 

$2.250 billion

Duration / Status: 

Construction began in 1997; operation began December 2004. The project is complete. Revenue service began June 6, 2005.

Fiscal Year Closed: 
FY1999
Project Description: 

The Tren Urbano is a single-line, 10.7-mile fixed-guideway rapid transit system that serves the municipalities of San Juan, Bayamón, and Guaynabo in Puerto Rico.

Tren Urbano includes 16 stations, a vehicle maintenance and storage facility, 74 rail cars, operations control center, traction power, train control, and communications systems. Most of the system is elevated with a 1.1-mile tunnel section in the Rio Piedras district.

The project was implemented to provide a solution to the continually rising vehicle traffic levels and to bring a new mode of transportation to the most congested sections of the San Juan metropolitan area.

Funding Sources: 
  • Federal Grants: $828.8M
  • Bond Proceeds: $637.8M
  • TIFIA Loan: $300M
  • Other Sources: $483.4M
Project Delivery / Contract Method: 

Design-Build (stations and 6 alignment sections)

Project Participants: 
Siemens AG
Project Advisors / Consultants: 

AECOM - Owner's representative

Kiewit Construction Company - Tunnel construction

To USDOT TIFIA JPO:

  • TIFIA Legal Advisor: Hawkins Delafield & Wood, LLP
  • TIFIA Financial Advisor: Montague DeRose & Associates, LLC
Project Lender(s): 
Bondholders, USDOT TIFIA
TIFIA Credit Assistance Detail: 

Direct loan: $300 million.  The TIFIA loan received a subordinate pledge of certain tax revenues (including the proceeds of motor fuel taxes, tire taxes, and vehicle registration fees) accruing to PRHTA.

Financial Status: 
The TIFIA Credit Agreement was signed on August 4, 2000. The USDOT disbursed the $300 million loan in its entirety on August 7, 2000. Taking advantage of the low interest rate environment, PRHTA refinanced the loan with tax-exempt debt in April 2003, fully prepaying the TIFIA loan in the amount of $305.6 million. In keeping with the TIFIA objective of encouraging prepayments when feasible, this loan was paid off 32 years earlier than its scheduled final maturity. The bonds issued to refund the TIFIA loan had an interest rate of 4.97 percent, just over 75 basis points lower than the interest rate on the TIFIA loan. The authority expects to save $31.7 million, based on net present value, when compared to maintaining the TIFIA loan.
Innovations: 

Systems and Test Track Turnkey procurement approach for one section of alignment, rail systems, and rolling stock

Project Contacts: 

N/A

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