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Why has DOT put a hold on all new RRIF loans??


----- Original Message -----
From: Eric Schwerin <eschwerin@rosemontseneca.com>
To: Lorenzo Roccia
Cc: Hunter Biden <hbiden@rosemontseneca.com>
Sent: Thu Jun 03 10:51:30 2010
Subject: Bullets

* Ultimately, the decision lies with the Engineers at Amtrak

* If CAF made it to the final two (in theory) they stand an equal chance of winning the bid as Alstom

* However, historically, Amtrak's engineers have had a predisposition to Alstom and there is a belief that Alstom has the advantage because of Amtrak's history with Alstom. Because of this point, it would be good to manage CAF's expectations.

* The bigger problem Amtrak management is dealing with is financing the purchase of the trains. Traditionally, this is done through a RRIF loan which is made by the Federal Railroad Administration (FRA) through DOT. Right now, DOT has put a hold on all new RRIF loans.

* They are going ahead with the RFP but it is certainly possible that it could be delayed if the RRIF loan doesn't come through.

* The keys to winning the bid are producing the trains faster (as far as deliver is concerned), cheaper and safer. Also, it is important to produce as much as possible in the U.S. and create as many U.S. jobs as possible.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com <x-msg://59/eschwerin@obblaw.com>
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