MTA Purple Line Bethesda - New Carrollton Light Rail

> Maryland will manage Purple Line construction....

Manage, snanage.. Who is going to BUILD it?
The PP Partnership is failing at 2 different level, white collar and blue collar.

A lot of hungry contractors who don't have enough work right now ...

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farecard
> Maryland will manage Purple Line construction....

Manage, snanage.. Who is going to BUILD it?
The PP Partnership is failing at 2 different level, white collar and blue collar.

The Maryland Transit Administration will do both. They managed the construction of both the Baltimore Subway and Central Light Rail.

The $64.00 question is, where is the funding to pay for the project coming from after Purple Line Transit Partners walks away.

China, of course.......

farecard wrote: ↑Thu Aug 06, 2020 6:00 pm China, of course.......

Yeah, here's how it's going to go down:

1. MTA gets the management thrown in their lap, takes the last good estimate, and applied for funding everywhere.
2. FTA says "LOL, No, too late now."
3. MD Board of Estimates gets it because it's over a half-million dollars, says "Nope, we're over budget already! Don't 'ya know there's a pandemic going on and we're not getting taxes?"
4. MTA tells the Governor "Ether we float a bond or it's shut down."
5. Governor orders them float the bond.

From there it's a good assumption that China would buy the bonds... but given the current political climate, plus the pandemic, and how China is getting burned on the movie industry because the theaters are closed down and nobody's making movies that aren't animation... I can't think they'll go for it for a few years.

China seems likely an unlikely buyer for state level transit bonds. Wall Street on the other hand would gobble them up. Maryland is probably one of the lowest risk states in the entire country for debt issuance.

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The State of Maryland will now be taking over management of the Purple Line construction.

https://trn.trains.com/news/news-wire/2 ... nstruction

The state of Maryland will take over management of the troubled Purple Line light rail construction project if the current public-private partnership is dissolved, state transit officials said last week in a letter to subcontractors. The consortium that has been managing the project said in June it would quit the project over ongoing disputes on cost overruns [see “Builders file plan to dissolve partnership …,” News Wire Digest, June 24, 2020], and the Washington Post reports it has begun preparing to shut down work on the project. A letter to the 171 subcontractors said the state would “exercise its step-in rights” to manage the project while the state “pursues its rights and remedies” in the ongoing dispute over what the consortium says are $755 million in overruns stemming from 2½ years of delays, many reflecting lawsuits attempting to stop the project or redesign work. The Maryland Transit Administration and the Purple Line Transit Contractors face an Aug. 22 deadline to reach an agreement.

At this point I more want a clear result on how it will be built the injunction has just delayed things, but I do presume the state will have to take over the project at this point but there will be endless lawsuits about damages. One of the points of using a P3 was to have the contractor want to build something that would be low cost to operate/easy to maintain (and thus do quality work). If they are ordered to work by courts I can't see where the incentive is any more. It just seems nearly certain the state will have to take over the management of the project.

MDOT loses showdown with Purple Line contractor
Bruce DePuyt Maryland Matters
09 10 2020, 10:28 PM
WTOP FM 103.5

FWIW:
Tuesday, they had Wayne Ave torn apart at multiple locations for utility relocations.

From Trains.com. Not looking good...

https://trn.trains.com/news/news-wire/2 ... ne-project

The consortium overseeing construction of Maryland’s Purple Line light rail project will be allowed to quit in mid-project over disputes with the state over cost overruns, a state judge ruled on Thursday. The Washington Post reports Judge Jeffrey M. Geller rejected the state’s request for an injunction keeping the Purple Line Transit Partners on the job while negotiations continued, saying the state has “no right to contest the termination” of the contract. A spokeswoman for the Maryland Department of Transportation said the state remains committed to finishing the project, but would not say if it would proceed with a suit against the Transit Partners alledging breach of contract. The Transit Partners said they remained open to further negotiations. The consortium announced its plans to quit in June over more than $700 million in cost overruns stemming from construction delays — many resulting from legal challenges to the project — and design changes [see “Builders file plan to dissolve partnership building Maryland’s Purple Line,” News Wire Digest, June 24, 2020].

Adam Tuss reports several contractors have reached out about taking over the purple line project, but no decisions made yet

YOLO
Adam Tuss reports several contractors have reached out about taking over the purple line project, but no decisions made yet

If so, those contractors would have to setup some kind of financing deal.

What will the collapse of this PPP do to Hogan's favorite dream, the widened Beltway Toll Road?

farecard wrote: ↑Sat Sep 26, 2020 11:55 am What will the collapse of this PPP do to Hogan's favorite dream, the widened Beltway Toll Road?

On hold until things improve.