CALIFORNIA (Metro Rail News): On Tuesday the state’s finance committee has confirmed the allocation of $600 million in tax-exempt bonds to move toward the private Virgin Trains for the intended high-speed rail project.
The $4.8 billion high-speed rail project would connect 2 cities among Las Vegas-Southern California. As per the Internal Revenue Service guidelines, the Virgin Trains market up to 4 times the amount of the $600 million in bonding authority that would complete of $2.4 billion in tax-free, private equity bonds.
Fiona Ma, California State Treasurer told that it’s not only a train but a necessary economic development tool for your region, creating 20,000 development job posts along with thousands of housing units and a clean, green electric MRTS.
In the last month, the U.S. Department of Transportation has bags $1 billion in tax-free private bonds to this project. Commenting on the bond permitted, Ben Porritt, Virgin spokesman, told that today’s approval is an excellent example of the public & private area working commonly to create statewide solutions for the transportation, economy, and housing, and it couldn’t grow at a more critical time.
The development work of the project would start only after getting last permission from Nevada state that would pass $200 million in bonds from the state’s debt limit allocation that will provide Virgin to market $800 million in bonds for the project.
“We still require the Nevada Department of Transportation agreement finalized, final environmental determination, evidence that the FRA would issue the decision record and David Robertson’s due diligence on the financial side before we can issue a finding of fact,” replied Terry Reynolds director of Nevada’s Department of Business.
- Name of the Project: California High-Speed Rail Project
- The estimated cost of Project: US$4.8 billion
- Total Length: 145 km
- Investor name: Virgin Trains
- Investment proposed via Virgin Trains: US$3.25 billion
- Break-up: $2.03 billion on infrastructure, $650 million on railway vehicles & $175 million on the California station.