The New York State Thruway Authority has received federal approval of a 35-year low interest loan for the $4.8 billion Tappan Zee bridge replacement project through the federal government’s Transportation Infrastructure Finance and Innovation Act (“TIFIA”). As previously reported, the Authority originally applied for credit assistance for up to 49% of eligible project costs under the expanded MAP-21 TIFIA credit assistance program. The final loan amount only covers 33% of eligible project costs, but is still the largest award in the history of the TIFIA program. The estimated price tag for the project includes a $3.1 billion fixed price design-build contract, approximately $800 million in financing costs, and costs of environmental, planning, right-of-way acquisition and other project development work.
The TIFIA loan approval marks a major step forward for the project, and closely followed commencement of bridge construction in mid-October when Tappan Zee Constructors, LLC started installation of the first permanent piles for the bridge foundation.
The project is scheduled for completion in less than five years -- greatly accelerated from the timeline that would have applied had the project proceeded using a design-bid-build approach. New York Governor Andrew Cuomo has announced that the project is currently on budget and on schedule, and has already created nearly 600 jobs and benefitted over 500 businesses, 220 of which are local contractors, consultants, and suppliers located within 60 miles of the project.
For the latest news on the TIFIA loan program, including loan announcements, see the TIFIA program website.