Allocates $100 billion for a grant competition with preference given to applicants that raise revenue such as taxes, fees or tolls, and would limit federal help to 20% of new money generated.
Selling the naming rights for an entire mass transit system puts Detroit future streetcar on the forefront of a trend in public transportation, say several industry analysts.
Nine companies, mostly large construction, engineering and infrastructure firms that have worked on high-speed rail elsewhere, have written letters saying they are interested in financing part of what would be the state’s largest-ever infrastructure project.
The rail proposed by the Texas Central High-Speed Railway would transport passengers from Dallas to Houston in about 90 minutes.
The half-mile long Union Street Gondola will be able to move 1,800 people an hour and will be funded solely through private investment.
Backing the Texas-based company is a group led by Central Japan Railway Company, which handles more than 100 million passengers each year on its bullet trains in Japan.
The $150-million investment is in the form of 7.50 percent convertible notes due in 2016. The notes will be convertible into shares of Clean Energy common stock at $15 per share. The closing of the investment is scheduled to occur on or before Aug. 30, 2011 and is subject to customary conditions.
Pursuit of private financing is one of several actions taken by the agency to expedite its next-generation high-speed rail vision plan since it was announced in September 2010. The business plan will identify and develop public and private funding sources and address fundamental issues of risk, credit, debt and investment phasing among other criteria.
The patented and proprietary designs for hybrid and all-electric buses significantly reduce emissions and provide lower total life-cycle operational costs, according to the company.
When properly employed, such partnerships between government and the private sector can expedite projects, transfer development and operations risk, and provide better opportunities to leverage limited funds.
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