In addition to these sources, WMATA had a $600 million credit commitment (i.e. a line of credit) from Lehman Commercial Paper, Inc., guaranteed under TIFIA. This loan commitment enabled WMATA to demonstrate adequate tax capacity, in accordance with the terms of its financing agreement with local jurisdictions. ANNAPOLIS, Md. (WJZ) – Gov. Larry Hogan announced Thursday that the state would release $83.5 million in capital funds to WMATA after a new capital financing agreement. WMATA completed the construction, renovation and other improvements for the IPC, without the use of the loan guarantee, to finance all project costs from a program focused on deferred maintenance and improvements to the existing system over a series of subsequent years. This credit guarantee was withdrawn when the contract expired in January 2010. In 1999, WMATA obtained a loan guarantee of up to $600 million from TIFIA to fund a total of $2,324 million for a capital program to delay the maintenance and improvement of the existing system in a number of years to come. WMATA`s Capital Improvement Program (CIP) has replaced refurbished vehicles and facilities and equipment on rail and bus systems. The acquisition of new buses and railway cars was one of the components of the IPC. Maintenance and repair of electrical and mechanical systems, communications, tracks and structures to improve system-wide performance; renovation of escalators and elevators and other station extensions; Improved parking spaces and upgrades to multiple maintenance facilities. „The agreement we have reached on behalf of Maryland taxpayers requires a detailed six-year capital budget similar to the Maryland CTP, detailed monthly and quarterly project financial reports, a robust debt policy and account control,“ Hogan said in a statement.
„As Metro`s largest funder, Maryland will continue to build WMATA and take all necessary steps to ensure that they meet these new standards of accountability.“ Washington Metropolitan Area Transit Authority (WMATA) TIFIA`s loan guarantee allowed WMATA to obtain the loan commitment free of charge. The TIFIA guarantee guaranteed refunds to Lehman Commercial Paper, Inc. if WMATA benefited from the credit commitment and was unable to repay. Revenues that would ensure a loan commitment and thus the TIFIA guarantee included gross system revenues and payments provided by local governments to support the IPC. . WMATA operates a rail and bus system that serves the territory of the nation`s capital. It is the fourth largest transit system in the United States, and WMATA is the second largest rail transit system in the country, covering 103 miles and 83 stations. „WMATA has finally accepted our demands for greater transparency for every dollar spent and all future investments in the Metro system,“ Hogan said in an email to WJZ.