Quote:
Originally Posted by bunt_q
This is the most absurd thing in this entire thread. Saving on rail vehicles enabled RTD to build two extra lines? It had nothing to do with massive infusions of private money to still not complete the program as initially envisioned (and poorly cost-estimated), despite an economic recovery. On the other hand, if RTD has correctly estimated and sized the program in the first place, once the economic recovery came along, we could've gotten shiny new trains, dumped the high blocks, and still moved ahead with private partnerships, which would've gotten us four new line. Yipee.
See what I did there? I made up some 🞵🞵🞵🞵 that supports what I think.
|
LOL, you are insufferably silly at times.
So you presume RTD should have been able to foresee the tripling of copper prices and other basic materials in a couple of years after voter approval was obtained? If you've got that kind of predictive vision you should quit your day job and play the commodities market.
Furthermore if RTD would have envisioned a buildout cost of closer to $7 billion then the whole ballot question would have looked much different. Who knows if it would have even passed under such a scenario?
Oh Boy! Where are these "massive infusions of private money" you speak of? I missed that part.
The DTP P3 used a little over ! billion from RTD, a little over $1 billion thanks to the ARRA and then borrowed (IIRC) about $700 million from a division of Lloyds Banking Group, Plc. to cover their soft costs. They have zero skin in the game that I'm aware of. I assume their return will be sufficient to comfortably cover the payback & LIBOR on the Lloyds' loan and also return a fair management profit?
I don't know the particulars on the Aurora line but far as I can tell it's a largely a design build contract. Maybe Kiewit also borrowed to cover their soft costs and maybe even fronted some of the hard costs but it's no more than financial engineering. The advantage they brought was they could do this.
The reason RTD could go forward was the improving economics including better, growing tax receipts plus their whittling down of costs including the P3 by single tracking etc. which provided the extra room to move forward on both projects. If you don't think cost management was a key you are naive.