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Tuesday, May 17, 2016
Full Text: FTA Statement on Rail—$8 Billion Dollars and 8 More Years
By News Release @ 6:44 PM :: 2918 Views :: Rail

Federal Transit Administration Statement on Honolulu Rail, May 16, 2016

The Federal Transit Administration (FTA) has conducted a risk assessment of the Honolulu Rail Project cost and schedule. While the draft risk assessment has identified a significant funding gap in the total project cost, we will work with the Honolulu Authority for Rapid Transportation (HART) to determine if revisions are required before we finalize the assessment. In addition, we will work with HART to ensure it is taking every reasonable measure to mitigate cost overruns and minimize the delay in opening the project.

The Full Funding Grant Agreement (FFGA) for the Honolulu Rail Project, signed by FTA and the City and County of Honolulu in 2012, has a total project budget of $5.1 billion, which includes $1.55 billion in FTA Capital Investment Grant program (New Starts) funds. During the past year, Hawaii state and Honolulu City Council actions have increased the non-federal funding available to support a total project budget of $6.8 billion. FTA’s draft risk assessment identifies a significant remaining funding gap beyond $6.8 billion of approximately $900 million to $1.2 billion. Keep in mind the estimated date of completion for the project is December 2024.

As stated previously, FTA has not yet released the FY2015 and FY2016 funding increments for the Honolulu rail project. Until FTA receives and approves a revised project cost estimate, schedule, and financial plan which includes a commitment of all of the local funds needed to cover that cost estimate, FTA cannot award the FY2015 or FY2016 increments of New Starts (Section 5309) funds under the terms of the Full Funding Grant Agreement.

---30---

SA: Add 5 years and $1B for rail, federal agency says

CB: Federal officials also expect the project to be completed in 2024 rather than 2022

 

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