HONOLULU (AP) — Honolulu is under a loosened federal deadline to find ways to fully fund its multibillion-dollar rail project. ADVERTISING HONOLULU (AP) — Honolulu is under a loosened federal deadline to find ways to fully fund its multibillion-dollar rail
HONOLULU (AP) — Honolulu is under a loosened federal deadline to find ways to fully fund its multibillion-dollar rail project.
The Federal Transit Administration said in a letter to Mayor Kirk Caldwell that it would give the city until Dec. 31 rather than Aug. 7 to come up with ways to bridge the project’s funding gap.
The administration and city have a $1.55 billion funding agreement for the rail project.
“Please recognize, FTA is obliged to protect the public’s very substantial investment in the project, thus we need to know the city and county’s intentions for resolving your planning, engineering and financial issues as quickly as possible,” FTA Acting Administrator Carolyn Flowers wrote in the letter.
Costs are estimated around $1.5 billion over budget.
In June, the total project was estimated at $8 billion.
Caldwell had wanted a June 2017 deadline, after the upcoming election and legislative session.
He has suggested shortening the route to stay within budget.
The letter said federal officials and the Honolulu Authority for Rapid Transportation will meet to come up with an interim plan due in late September.
According to the letter, HART must decide to downsize the project, seek more funding outside of federal sources, or combine these options.
Caldwell said he is grateful the administration recognized that financial planning to finish the project to Ala Moana would require more time.
