TIFIA and private activity bonds: Additional financing sources for US PPP transportation projects

October 2007
Transportation Finance Review
Edward R. Neaher Jr.

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As the market for transportation public private partnerships gathers pace in the United States, private sector concessionaires are increasingly tapping into supplemental forms of debt finance, facilitated by the US federal government, that provide the benefit of lower cost financing and potentially longer tenors than is typically available in the taxable bank or bond markets. This article focuses on the two principal sources of such supplemental financing: TIFIA and private activity bonds, or PABs.