| Silver Line Extension to Cost More Than Boston's Big Dig |
| Written by Rob Whitfield | |
| Wednesday, 11 November 2009 | |
For immediate release-November 18, 2009
Reston, Virginia The life cycle cost of the Dulles Rail Extension exceeds that of Boston's infamous Big Dig, according to calculations released today by the Dulles Corridor User's Group. The Silver Line's 40 year cost, including financing, is now estimated at $22 billion, compared with the $14.6 billion cost for the Big Dig. The Big Dig was originally priced at $3.5 billion. The Silver Line now is projected to cost double the amount of the Panama Canal expansion and will lose money every year, unlike the Canal, which will produce a profit. Because of this high cost, new riders that the Silver Line will attract could enjoy a chauffeured Rolls Royce at less taxpayer expense. The high cost of the projected Dulles Rail extension is partly the result of the expensive method of financing, using revenue bonds issued by the Metropolitan Washington Airports Authority, which has a low credit rating and high borrowing costs. Accordingly, the after tax net cost of the financing currently proposed is $5 billion more than it would be had a regional sales tax been used, as is usually the case with rail projects. "This extra cost is total waste", according to Christopher W. Walker, head of the Group. "This is what happens when a politically unaccountable authority attempts to bypass the requirements in the Virginia Constitution to obtain voter approval of new taxes and bonded indebtedness which enjoy lower financing costs." The other difference, according to Walker, is that the lion's share of the cost of the Silver Line will fall on Fairfax County residents and businesses- 93% of the $22 billion cost, or $20 billion locally. "In contrast, the Big Dig, Maryland's Intercounty Connector, and rail projects elsewhere in the country are treated as regional improvements and are financed with broad based regional taxes that have received approval either by voters in a referendum or by elected officials accountable to their constituency". Of the 13 Board members of the Airports Authority, only 5 live in Virginia. By statute, they are nonelected. "Unfortunately, the Silver Line will provide no measurable increase in mobility for either private or public transport," said Walker. "It is an economic albatross that is totally unnecessary and will not reduce congestion. At least with the Big Dig, 250,000 cars and buses a day are moving more quickly through the Boston area. And the Big Dig is free to users-no tolls forever." The Dulles Corridor financing scheme is currently the subject of two state lawsuits and one federal lawsuit. ####################### To read the financial discovery statement, click here. For more information, contact Rob Whitfield at 703 655 0246 |
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