To confront the FasTracks transit expansion financial crisis, RTD is considering a plan that might include privatizing part of the rail system.
Officials said Friday that the Regional Transportation District is expected to explore using a so-called design-build-operate-maintain arrangement to help close a $2.5 billion shortfall in financing for voter-approved FasTracks.
Under the scheme, known as DBOM, constructing and operating the transit line would be farmed out to a private company or a team of companies, at least for an initial period.
RTD general manager Cal Marsella has been discussing various financing options as the agency tries to cope with rising costs in its $4.7 billion FasTracks program.
A draft financial analysis shows FasTracks rail lines and other transit improvements could cost as much as $2.5 billion more than the amount presented to metro voters in 2004.
RTD officials said the Feb. 28 financial analysis was preliminary.
On Friday, agency officials said they are preparing a “comprehensive program evaluation” of FasTracks, including updated cost estimates.
“The RTD FasTracks team is assembling the best financial and transportation delivery minds in the world to address these challenges,” Marsella said in a statement.
The study team is expected to include finance, engineering and construction experts from around the country.
“We are looking at any and all possibilities that make sense to deliver what was promised to the voters, within budget,” said Christopher Martinez, chairman of RTD’s board of directors.
Officials close to RTD say the DBOM model, or some variation, is likely to be part of the transit agency’s FasTracks solution.
Under these models, private firms assume finance, construction and operational risks that otherwise would be borne by RTD.
The FasTracks plan was approved by Denver-area voters in November 2004, when they agreed to increase RTD’s sales tax from 0.6 percent to 1 percent.
The plan, the largest transit expansion in the nation, calls for new train lines from Denver to Golden, Wheat Ridge, Boulder/Longmont, north Adams County and Denver International Airport.
There will also be a light-rail extension in the Interstate 225 corridor and other transit improvements. The entire FasTracks project is scheduled for completion in 2016.
“We are encouraged by the proactive steps the RTD FasTracks team has already taken to work with outside, independent experts,” said a statement signed by Denver Mayor John Hickenlooper, nine fellow area mayors and 13 other business and civic leaders.
Hickenlooper led the campaign to pass the FasTracks tax increase, and he helped enlist support from at least 30 other area mayors.
Staff writer Jeffrey Leib can be reached at 303-954-1645 or jleib@denverpost.com.
