New York MTA Eyes $500 Million of Congestion Pricing Debt
(Bloomberg) -- New York’s Metropolitan Transportation Authority plans to authorize up to $506 million of borrowing repaid in part with revenue from a yet-to-be-implemented program to charge motorists in certain areas of Manhattan.
The MTA, the largest mass-transit provider in the U.S., is set to approve the planned borrowing at its monthly board meeting on Thursday, according to documents posted on the agency’s website. Proceeds will finance building and installing infrastructure and tolling systems, according to the documents.
The authorization creates a new borrowing lien for the MTA. Debt service on the $506 million would be paid after payments are made on the agency’s existing $8.8 billion of Triborough Bridge and Tunnel Authority debt. The MTA had $47.5 billion of debt outstanding, as of Feb. 2.
The MTA estimates the congestion pricing program could bring in $1 billion a year, with that new revenue helping to support the agency’s multi-year $51.5 billion capital plan, its largest ever.
The MTA is still waiting for federal guidance on implementing congestion pricing, a needed step before it can charge motorists coming into midtown Manhattan.
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