Denver Eagle P3 Kinks Persist

Startup problems and larger issues related to faulty operation of grade crossings have delayed full revenue service on the Denver Eagle P3 project beyond the long-stop date in the owner’s $280-million TIFIA loan, resulting in a technical default. The TIFIA office at FHWA has elected to waive the 2% interest rate penalty so there is no financial impact on the borrower, Denver’s Regional Transportation District (RTD), at this point. The financial pain has fallen mainly on Fluor Enterprises, the managing partner in Denver Transit Partners (DTP). Together with Balfour Beatty Rail Inc., Fluor wrapped all of the DBOM integration risk on the $2-billion contract, $1.7 billion of which is on Fluor’s books.

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About Bill Reinhardt

Editor of Public Works Financing newsletter
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