According to a report released by the City and County of Hawaii, the Honolulu Rail Project is still within its overall budget of $5.26 billion. However, design and construction costs have increased by $160 million since the last estimate given in the fall of 2011. Officials are quick to assure the public that the rail project has a large cash cushion or “contingency fund” that can be used to cover unexpected cost increase and expenses. However this large increase is causing concern that the project cash reserves may be used up before too long.
Originally, the city had stated that they had nearly $1 billion in their contingency reserve to pay for any unexpected costs. This amount had decreased to $815 million in September 2011. In the financial plan released in June 2012, that amount had decreased to $644 million. Executive Director for the Honolulu Authority on Rail Transit, Daniel Grabauskas, did not seem concerned about this spending and felt that the budget was appropriate for this stage of the project. Grabauskas stated, “At this point we’re feeling very good about the fact that we are within the range that FTA has set, and based on the foreseeable future of what is known, we are going in with a very strong amount of contingency.”
Source: Honolulu Star Advertiser, 8-4-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
