Mass Transit:

Review of the Tren Urbano Finance Plan

RCED-00-94R: Published: Mar 31, 2000. Publicly Released: Mar 31, 2000.

Additional Materials:


John H. Anderson, Jr
(202) 512-8024


Office of Public Affairs
(202) 512-4800

Pursuant to a legislative requirement, GAO reviewed the Puerto Rico Highway and Transportation Authority's finance plan for its Tren Urbano Rapid Rail Line Project, focusing on the: (1) financing of the Tren Urbano project; and (2) reasonableness of the assumptions contained in the finance plan.

GAO noted that: (1) the Authority has sufficient funding to meet the expected cost of the project without seeking additional New Starts funds or adversely affecting other parts of the transportation system in Puerto Rico; (2) to finance the project, the Authority plans to use a combination of federal New Starts funds (18 percent), other federal transportation funds (25 percent), and local funds (57 percent); (3) the finance plan identifies numerous local funding sources, including the proceeds of taxes and other receivables that have been committed to the Authority by law and do not require further legislative action; (4) in addition, GAO found that the Authority's finance plan contains reasonable cost and financing assumptions; (5) GAO did, however, find that a number of issues could affect the project's schedule and cost; (6) for example, some of the project's contractors have had problems meeting construction milestones because of the lack of skilled labor; and (7) nevertheless, in light of the Authority's significant dedicated revenues and bonding capacity, the Authority should be able to pay for future cost increases if they occur.

Jul 30, 2018

Jul 26, 2018

Jul 19, 2018

Jul 12, 2018

May 31, 2018

May 29, 2018

May 24, 2018

Apr 9, 2018

Feb 28, 2018

Jan 30, 2018

Looking for more? Browse all our products here