List Your Equipment  /  Dealer Login  /  Create Account

Honolulu Rail Project Could Cost as Much as $9.5B

Fri December 23, 2016 - West Edition #26
Construction Equipment Guide

HONOLULU (AP) Officials overseeing Honolulu's multibillion dollar rail project say that depending on financing costs, the rail system could cost as much as $9.5 billion.

The higher price tag is just an example of how much the rail could cost depending on how the city ultimately decides to pay back bonds and interests on the project, Honolulu Authority for Rapid Transportation officials told The Honolulu Star-Advertiser.

The latest figure was included in a draft update of the rail system's financial plan.

“One financing strategy could result in finance charges of up to $1.3 billion, which would bring the total project budget to $9.5 billion,” the new draft financial plan states.

The high figure is based on a scenario in which the general excise tax surcharge for the rail gets extended another 10 years at the same 0.5 percent rate.

Brennon Morioka, HART acting director, said the $9.5 billion figure was developed over the past few months as the agency put together the draft plan and that it had not been released to the public before.

In September, HART officials estimated the system would cost $8.6 billion, with that figure including about $400 million in financing and debt service costs.

Estimates for the rail's construction remain at $8.2 million, Morioka said. It's the financing plan that could drive up the final budget, he said.

An initial budget of $5.26 billion included the financing costs.

Even if state lawmakers approve a permanent rail tax extension, HART and the city could look at various financing strategies enabling them to expand rail into the University of Hawaii, Manoa and downtown Kapolei that could easily drive the final cost of the first 20 miles above $8.6 million, Morioka said.

For more information, visit

Today's top stories

VIDEO: Schlouch Deploys Big Cat 395 to Massive Project

FIA World RX Electric Era Takes off With Volvo as Official Track Building Partner

J.W. White Contracting Leads Summer Tunnel's Major Restoration Project

Dish Soap Helps Move Million-Pound Bridge

ABC Announces 2022-2023 Tech Alliance Members

Pennsylvania Contractor Takes Delivery of First Doosan DD100 Dozer

Innovative Steel-Concrete Beam Tested at University of Arkansas by MIT Researcher

Cat 350 Excavator Delivery Productivity, Enhanced Sustainability

ceg-logo ceg-logo ceg-logo ceg-logo ceg-logo
39.04690 \\ -77.49030 \\ Ashburn \\ VA