The TIFIA loan program remains an important component of financing P3 projects. Of the nine transportation P3s projects that closed over the past two years, six have TIFIA loans. The program is facing reauthorization at lower funding levels than the historic levels provided during the last federal program authorization period (MAP-21, covering FY 2013-2015).  What’s happened to the portfolio during MAP-21 and will the proposed lower funding authorization reduce loan availability to P3 projects?

Let’s look at the current portfolio. From a credit perspective, the TIFIA portfolio is large but high risk—as dictated by its legislation. The assets in the portfolio are concentrated by sector, region and highly correlated. Loans are for only surface transportation projects located in the U.S. and half are with projects in just three states (see table below). More than half of the loans are secured by toll revenues (56%) and sales and motor fuels taxes (17%)—revenues that move with regional and national economic trends. . .