September 11, 2018
Two Japanese financial companies will help provide up to $300 million to help pay for the proposed private high-speed rail between Dallas and Houston by setting up a special fund for the project to use in addition to private money already contributed, “to reach financial close;” the rail system design will rely on Japanese technology
Plans for a high-speed rail “bullet train” between Houston and Dallas can move ahead more rapidly with the security of a $300 million loan from the Japan Bank for International Cooperation (JBIC).
JBIC says it signed an agreement on August 31st to create a Special Purpose (Financial) Vehicle to create an entity called Japan Texas High-Speed Railway Cayman LP (JTHSR), which will loan the money to Texas Central Rail holdings, LLC.
JBIC and JTHSR will join with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) to provide the interest-bearing loan of up to $300 million.
The arrangement includes the use Japan’s high-speed railway technology based on the Tokaido Shinkansen system owned and operated by the Central Japan Railway Company, to “promote the export of Japanese infrastructure technology,” JBIC said in a press statement.
“Texas Central will use the funds to move ahead on permitting, design and engineering, as well as other early works needed to launch construction during 2019,” Texas Central Rail Holdings said in a statement Tuesday.
The Texas company plans to use the loan to augment “equity provided to date” — including the “majority coming from Texas entrepreneurs – will provide enough funding for all activities required for the project to reach financial close,” as noted by Quorum Report.
Also see: Here’s what a Texas Bullet Train station might look like