NPT Project Summary & Update
The Partnership's $175 million loan is financing SEPTA's modernization of its fare collection technology. The NPT Project includes fabrication and installation of new vending machines, sales devices, turnstiles and gates, the design and implementation of advanced computer equipment, network components and software systems that will connect and support the new fare payment and collection systems for SEPTA's buses, rails, regional rails and parking operations located throughout the five county Philadelphia Region.
The NPT Project is comprised of three development phases. Phase I included the design of the new payment technology software and was completed in October 2014. Phases II (bus, trolley and subway installation) and III (regional rail installation) include comprehensive pilot testing and debugging of software, and installation of new turnstiles and fare kiosks throughout SEPTA's network of stations.
SEPTA continues to make progress in moving the NPT Project closer to completion. As confirmed in our last update, the major functionality of SEPTA Key is up and running on all of Transit (bus, trolley and subway) and all Transit sales offices have been activated. According to the Borrower's latest update, Key Card sales have started throughout SEPTA's external retail network. To date, 344 external sales locations are registered to sell Key Cards with the total expected to grow to 500 by August 2018. Additionally, SEPTA has issued over 900,000 Key Cards for use on the Transit system with over 60% of riders now using the new payment technology.
On the Regional Railroad, the installation of turnstiles, ADA gates, rotary gates and fencing is substantially complete at three of the five Center City Philadelphia Stations. Installation at the two remaining stations is underway and expected to be completed in July 2018. Equipment installation at the outlying railroad stations is substantially complete with testing and acceptance underway. SEPTA is currently testing the new payment technology on the Regional Railroad and will initiate an Early Adopters Program in August 2018. This will be followed by a rollout to all Regional Railroad customers with the major functionality of the SEPTA Key expected to be operational by the Fall 2018.
As of May 31, 2018, SEPTA estimates that approximately 96% of work has been completed for Phase II and approximately 70% of work has been completed under Phase III - with total Project completion anticipated by October 2018. Project progress photos can be viewed here.
Partnership Loan Disbursement
As referenced in the Offering Materials, the Partnership's loan to SEPTA was funded in three tranches based on SEPTA's qualifying expenditures. As of January 31, 2017, all tranches of the loan were fully disbursed to the Borrower.
As noted in previous Semi-Annual reports, Tranche I of the Partnership Loan reached maturity and was fully repaid by the Borrower on May 30, 2017. The loan closing and maturity dates for each loan Tranche remain as follows:
Tranche II: $75 million
Loan Commencement Date: December 31, 2013
Loan Maturity Date: July 1, 2019
Tranche III: $65 million
Loan Commencement Date: December 30, 2015
Loan Maturity Date: July 1, 2019
Job Creation & I-829 Update
An estimated 3,553 total qualifying jobs have been or will be created within a reasonable time and are sufficient to satisfy the USCIS job-creation requirement for all 350 Limited Partners of the NPT Project. Approximately 99% of I-829 Petitions for Limited Partners in the NPT Project have been filed with the USCIS as of June 2018. Of the filed I-829 Petitions, USCIS approved 303 and the remaining are pending adjudication. Please visit the USCIS website for more information.