Maryland Department of Transportation (MDOT) and the Purple Line Transit Partners, LLC, have signed the final financial documents on the USD 5.6 billion Purple Line Public-Private Partnership (P3) contract.
By completing the financial close milestone, all public and private sector partners have cleared the way for the Purple Line Transit Partners to proceed to design, build, operate, finance and maintain the 25.7 km LRT system from Bethesda to New Carrollton. The Purple Line Transit Partners secured all its financing for the project, including an USD 875 million Transportation Infrastructure Finance Innovation Act loan, USD 313 million in Private Activity Bonds and USD 138 million from the partners’ own private equity.
This financing secures the savings MDOT anticipated by delivering a cost-effective project that reduced the original cost estimate over the life of the project from USD 6.2 billion to USD 5.6 billion. With future fare revenues and local and federal contributions, the project will cost the state less than USD 3.3 billion over the 36-year life of the agreement while delivering the first P3 light rail project in the nation.
Construction is on schedule to start late this year with service starting in spring 2022 and involves the 25.7 km line and 21 stations. The total construction cost in the P3 contract to design and build the Purple Line is USD 2 billion.
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