The Honolulu City Council has announced that they are giving preliminary approval for a $450 million loan for the Honolulu Rail Project in the event that the project runs out of money due to an “unexpected mishap or disaster during construction.” The Honolulu Rail Project is already expected to cost $5.27 billion, and opponents of the project argued that the City Council is giving rail a “blank check” that taxpayers would be responsible for.
Supporters of the rail project argue that it is highly unlikely that this $450 million loan will actually be needed. However, the Federal Transit Administration required that the city has access to a backup source of money in the event of unforseen problems. The Federal Transit Administration has not yet agreed to commit $1.55 billion in federal funding to the project.
Source: Honolulu Star Advertiser, 4-26-2012, www.staradvertiser.com
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