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Capitalized construction costs include labor, materials, equipment, overheads (IT, HR, Legal, Procurement, Audit, etc.), financing and training associated with the operation of the project.  The cost of financing can raise significantly the cost of a capital project.  For example, a 30 year municipal bond ($1,000) issued at 4%, which is reasonably close to the interest rate for AAA municipal bonds, would require $2,200 (correction) to pay the interest every six months and the principal upon maturity.  The interest and principal is chargeable to the cost of the project, together with the investment banking fees associated with organizing and issuing the bonds.  Therefore, the cost of the project would be $2,200 (correction), plust the issuance fees, for every $1,000 of bonds issued to pay the project invoice costs.  If the numbers presented for the various systems do not include the same elements, as per above, they are not comparable.   Equally important, if the numbers do not include the cost of financing, the accounting is not proper.The costs per mile numbers are shocking, especially when compared to the cost of rehabbing existing rail lines.  The cost to upgrade the Leander to Austin portion of the Austin & Western for commuter rail service averages approximately $3.8 million per mile.  The estimated cost to build a bypass around Austin and San Antonio for UP's freight trains, which TxDOT and UP say is necessary to implement commuter rail between Austin and San Antonio, averages $16 million per mile, while the estimated cost to upgrade the UP for expanded passenger train service averages $5.6 million per mile.    The estimated cost to implement BRT in Austin averages $702 thousand per mile.  I would like to know the source of the numbers for the systems presented in the opening posting for this thread.
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