Maryland Purple Line closes financial deal

Maryland Department of Transportation (MDOT), Maryland Transit Administration (MTA) and Purple Line Transit Partners, have signed the final financial documents for a $5.6 billion PPP contract to design, build, finance, operate and maintain the light rail Purple Line north of Washington DC.

Purple Line Transit Partners comprises Meridiam as a 70% equity provider, with Fluor Enterprises and Star America each providing 15% of the equity. Meridiam is an investor and asset manager specializing in public and community infrastructure. Fluor Construction has formed a construction joint venture to build the line with Lane and Traylor Brothers, while a consortium of CAF USA, Fluor and Alternate Concepts will operate and maintain the line.

CAF USA holds a 20% stake in the operations and maintenance consortium and will supply a fleet of 26 LRVs worth around $200 million for the project.

Purple Line Transit Partners has secured all its financing for the project, including an $875 million Transportation Infrastructure Finance Innovation Act loan from the US Department of Transportation; $313 million in private activity bonds issued by the Maryland Economic Development Corporation and $138 million from the partners’ own private equity.

The 26km east-west Purple Line will run from Bethesda to New Carrollton serving suburbs inside the Capital Beltway north of Washington DC. The 21-station line will connect four branches of the Washington Metro, three commuter rail lines, plus Amtrak’s Northeast Corridor, and will have 21 stations. The line will have a mixture of dedicated rights-of-way and street running. Passenger services are due to begin operating in early 2022.