* Hudson River train tunnel would get $2.7 bln
* Manhattan bus terminal would get $3.5 bln
* Lease approved for $4 bln Delta terminal at LaGuardia
By Hilary Russ
NEW YORK, Jan 5 The Port Authority of New York
and New Jersey agreed to a $32 billion, 10-year capital plan on
Thursday, including funding proposals for a new Hudson River
train tunnel and a new Manhattan bus terminal.
The authority, which oversees many of the biggest
transportation infrastructure projects in the region, faces a
roughly $20 billion funding gap between what it wants to build
and what it can afford to build.
The Port Authority operates airports, bridges and tunnels in
the bi-state area, which produces at least 10 percent of the
nation's economic output, according to the U.S. Census Bureau.
The draft plan is expected to be published on the
authority's website in coming days. Public meetings will be held
on Jan. 31 and Feb. 7 before the comment period closes on Feb.
The plan is "fair to New Yorkers and will allow the Empire
State to move forward on one of the most ambitious
infrastructure plans in the nation," New York Governor Andrew
Cuomo said in a statement.
The Port Authority is jointly overseen by the govenors of
New York and New Jersey.
The draft calls for $2.7 billion to help pay for the new
rail tunnel, which is part of Amtrak's Gateway Program for its
That promise is "far and away the largest single commitment
of financing to the Gateway tunnel," Port Authority Executive
Director Pat Foye said. "It is a huge step forward."
The capital plan also lays out $3.5 billion for a bus
terminal to replace the outdated, 66-year-old terminal on
Manhattan's West side. Of that amount, $500 million would come
from federal grants.
Officials have split on where a new facility would be
locatedd and how to pay for it.
Port Authority Chairman John Degnan acknowledged that $3.5
billion would not be enough to complete the project but said he
expected officials to find additional funding later.
New Jersey lawmakers have fumed at what they say is
political interference in the plan and have scheduled a
legislative hearing for Jan. 17.
Separately on Thursday, the authority's board approved a
33-year lease with Delta Air Lines Inc. for the design,
construction and financing of a new 37-gate terminal at
Delta and West Street Infrastructure Partners III, a fund
managed by Goldman, Sachs & Co, will contribute $300
million in equity investments and $3.6 billion in debt
financing. The Port Authority previously approved $600 million
of its money for the project.
That project is on top of a $4 billion public-private
partnership, currently underway, to rebuild the airport's
(Reporting by Hilary Russ; Editing by Daniel Bases and Leslie