Q&A
Financing plan for the Port Authority Bus Terminal replacement project
0:44:09
·
3 min
Port Authority representatives provide a detailed breakdown of the $10 billion financing plan for the bus terminal replacement project. They discuss various funding sources and the critical nature of securing a federal loan.
- Explanation of the $3 billion allocated in the current Port Authority capital plan
- Discussion of the $1 billion federal TIFIA loan being sought
- Overview of additional funding sources, including future capital plans and development rights sales
Kevin Riley
0:44:09
Has the financing for this project been secured?
Hersh Parekh
0:44:12
I'm sorry.
0:44:13
Repeat the question, please.
Kevin Riley
0:44:13
Has the financing for this project been secured?
Hersh Parekh
0:44:16
Oh, sure, sir.
0:44:17
If we can flip to we have an appendix slide on that, slide 72.
Kevin Riley
0:44:37
Are we
Hersh Parekh
0:44:38
Oh, I'm gonna say, do we want to put the slide 72 on the
Kevin Riley
0:44:41
72?
Hersh Parekh
0:44:42
Yes.
0:44:42
Oh, there it is.
Kevin Riley
0:44:42
Perfect.
0:44:43
There you go.
Hersh Parekh
0:44:44
So as I noted, it's a $10,000,000,000 construction, cost for the full, full program, both phases combined.
0:44:51
The phase 1, as I mentioned, which is the, building of the temporary terminal, the ramps, and the deckovers, in our current Port Authority capital plan, we have a 3 we have $3,000,000,000 allocated towards this project.
0:45:05
I also mentioned the 1,000,000,000 dollars in the federal TIFIA loan that we are, seeking from the, USDOT.
0:45:12
And I noted, you know, the, time sensitivity of that in trying to lock that down before the end of the year to avoid any further delays, due to a transition in administration.
0:45:22
So that's phase 1.
0:45:24
Phase 2 of the project is approximately a $6,000,000,000 cost, and that will be, demolishing, the existing terminal and rebuilding, the new terminal on on the on the same footprint.
0:45:37
For that, we expect to allocate another approximately $3,000,000,000 from our next Port Authority capital plan, and and combined, this will represent the largest commitment of Port Authority capital dollars on a single project between the two phases.
0:45:53
In addition to that, we reached an agreement with the city of New York earlier this year, whereby the, pilot payments from the 2 commercial towers that would be built atop the new main terminal, We would receive those payments from this, in order to help finance this project, and we also anticipate some revenue to come from the sale of those development rights.
0:46:15
So the port authority itself will not be building the towers.
0:46:18
We will seek private developers to come and build and operate those towers, and so, that also creates additional sources of of funding.
0:46:27
And then finally, we will be looking for additional, grants or loans from the federal government for the phase 2.
0:46:33
So, we are working towards, completing the funding plan.
0:46:38
The federal loan is critical for the phase 1 of this project.
Kevin Riley
0:46:41
Okay.
0:46:43
Hypothetically speaking, if that doesn't take place by the end of this year, what happens?
Hersh Parekh
0:46:50
I think we like to be optimistic and, and expect that, we've had very good discussions with the Department of Transportation and the Build America Bureau.
0:46:59
As I noted, we are anticipating the record of decision for the environmental review process in the very next very short period of time.
0:47:06
Okay.
0:47:07
And if all of these dates hold, including the conclusion of this Euler process, we are optimistic that we should be able to close on the loan, you know, in a in a timely manner.
0:47:18
You know, if the loan, does not pan out in the way that is needed for this project, we will have to, you know, take a look at the funding plan, take a look at the project, and and likely makes make some very hard decisions about about it.
