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U.S.Department of Transportation
Office of Public Affairs
Washington, D.C.
www.dot.gov/affairs/briefing.htm
News |
DOT Announces New Initiative for Loan and Credit Programs
Contact: Steven Kulm
Telephone: 202-493-6024
Wednesday, July 14, 2004 (Washington, DC) The U.S. Department of Transportation today announced the establishment of a department-wide
Credit Council to enhance oversight and management of the Department's direct
loan and loan guarantee programs that are administered by the Maritime Administration,
the Federal Railroad Administration, the Federal Highway Administration and the
Office of Small and Disadvantaged Business Utilization.
Currently, the Department's four credit programs are responsible for $7.5 billion
in outstanding loans and guarantees (including pending commitments).
"As we continue to build a transportation infrastructure and transportation
assets that keep our economy moving, it is critical that we act on proven principles
of financial management to assure both taxpayers and users of the Department's
direct loan and loan guarantee programs that we are protecting the integrity
and management of these programs," said U.S. Transportation Secretary Norman
Y. Mineta. "The DOT Credit Council achieves this important need."
"The Council will offer a fully coordinated and integrated review of
incoming applications and current loan portfolios by standardizing the Department's
oversight of the financial review process," said Linda Combs, Assistant
Secretary of Budget and Programs/Chief Financial Officer.
The DOT Credit Council is scheduled to meet quarterly and is modeled after
the Transportation Infrastructure Finance and Innovation Act (TIFIA) Credit
Council that will now be combined into the department-wide Council.
In addition to the Federal Highways' TIFIA program, the Maritime Administration's
Maritime Guaranteed Loan (Title XI) Program, the Federal Railroad Administration's
Railroad Rehabilitation and Improvement Financing program, and theOffice of
Small and Disadvantaged Business Utilization's Minority Business Resource Center
Short-term Lending program will greatly benefit from the Credit Council's emphasis
on solid financial analysis and review.
The establishment of the DOT Credit Council will lead to a more expedient and
streamlined application review process while preserving autonomy within each
operating administration. For example, applications for the Railroad Rehabilitation
and Improvement Financing program will continue to be submitted to the Federal
Railroad Administration and decisions to approve or disapprove an application
will continue to reside with the FRA Administrator.
"I believe that railroads will soon discover that the Credit Council
will greatly enhance the application process by providing greater efficiency,
transparency and reliability from the time an application arrives to the point
when a decision is made," said FRA Acting Administrator Betty Monro.
The DOT Credit Council is comprised of the Assistant Secretary for Budget
and Programs/CFO, who serves as chair, the Under Secretary of Transportation
for Policy, the General Counsel, the Assistant Secretary for Transportation
Policy, the Federal Highway Administrator, the Federal Transit Administrator,
the Federal Railroad Administrator, the Maritime Administrator, and the Director
of the Office of Small and Disadvantaged Business Utilization.
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