MBTA to fund PTC installation with TIFIA and RRIF loans

Written by Mischa Wanek-Libman, editor
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Two federal loans totaling $382 million will help the Massachusetts Bay Transportation Authority (MBTA) with its positive train control (PTC) project.

The two loans through the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) programs are designed to support infrastructure projects of national significance and the development of railroad infrastructure. MBTA says this marks the first-ever combined commitment under the two programs.

“Securing long-term funding for the PTC project at a low interest rate puts us one step closer to our goal of achieving fiscal sustainability,” said MBTA Acting CFO and Treasurer Paul Brandley.

The MBTA issued the first-ever tax-exempt Sustainability Bonds in October to support other projects in its Capital Investment Program.

Congress first passed the mandate for the installation of PTC systems in 2008 requiring a deadline of Dec. 31, 2018 for installation with an extension to Dec. 31, 2020, available to transit authorities that meet key milestones. MBTA awarded a contract to Ansaldo STS USA, Inc., in 2015 and is now working to install hardware along all of its commuter rail lines with installation being complete by 2020.

The transit authority has filed a PTC Implementation Plan with the Federal Railroad Administration (FRA) and projects the program will cost more than $459 million (which includes a 13.5 percent contingency). In June 2017, FRA awarded MBTA a grant to install a back office system for MBTA’s PTC system. The grant was one of 17 the FRA awarded for PTC installation on passenger rail systems.

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