On November 8, 2002, a $58 million direct TIFIA loan was approved for the Rhode Island Economic Development Corporation’s (RIEDC) new $215 million intermodal facility at T.F. Green Airport in Warwick, RI. This is the first project to be selected for TIFIA credit assistance in FY 2003. The intermodal facility will be constructed as a public/private partnership among the Rhode Island Department of Transportation (RIDOT), the Rhode Island Airport Corporation (RIAC), which is a semi-autonomous subsidiary of RIEDC, and the nine rental car companies serving airport customers. RIEDC will serve as issuer for the project’s senior debt and as borrower for the subordinate TIFIA loan.

The objectives of the project are to provide greater access to the T.F. Green Airport via public transportation; remove cars and shuttle buses from the surrounding airport access roads; create a more efficient rental car facility at the airport, and reduce commuter automobile traffic on I-95. In addition, RIDOT has entered into an agreement with the Massachusetts Bay Transportation Authority (MBTA) to provide commuter train service from Boston to the proposed station in Warwick, allowing T.F. Green to serve as a more efficient alternative to Boston’s Logan Airport.

The project has two components:

o The intermodal facility, consisting of

1. A multi-level Amtrak and commuter train station and platforms;

2. A 3,000 space parking garage for rental car companies and commuters;

3. A rental car mall and quick turnaround system for refueling;

4. A bus terminal; and

5. An automated people mover connecting the facility to the Airport.

o Commuter rail equipment, comprised of:

1. A train set providing commuter service from Boston to the airport; and

2. Used diesel engines and cars providing train service to Providence, RI.

The senior bonds and the subordinated TIFIA loan would be repaid by a pledge of all rental car Customer Facility Charges, now collected at $3.75 per transaction day and scheduled to escalate to $5.00 per transaction day by 2007. In addition, the rental car companies would pledge $725,000 per year directly from their own funds. All operation and maintenance costs would be paid by RIAC using concession and lease rental revenues from the facility.

The project would be financed through a new revenue bond indenture under which senior tax-exempt and taxable bonds will be issued. TIFIA would be a subordinate bond holder under the proposed indenture.

Over 70 percent of the design of the project is complete. The project will be built with a date-certain guaranteed maximum price contract.