[M II A II R II K]

The Hudson Tunnel Projects trims $1.4 billion with new financial plan

https://www.masstransitmag.com/rail/...financial-plan

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- The project cost for the construction of a new rail tunnel beneath the Hudson River and the comprehensive rehabilitation of the existing 108-year-old tunnel will cost $1.4 billion less than previously anticipated, resulting in an estimated cost of $9.5 billion for the new tunnel and $1.8 billion for the rehabilitation. --- The reduced cost results from work conducted at the request of New York Gov. Andrew Cuomo and New Jersey Gov. Phil Murphy to position the project to advance quickly once the federal permits are issued. This work includes a more advanced level of design, and an intensive value-for-money analysis, including analysis of risks and associated mitigations, a more efficient contracting plan resulting in fewer contract packages, and consideration of delivery methods including design-build.

Additional details of the financial plan include:

• Fully maintaining the local partner’s previous commitment of $5.55 billion towards the project, which, following the reduction in overall project cost, allows $700 million to be committed to the local share of rehabilitating the damaged North River Tunnel (the existing 108 year-old one-track-in, one-track-out link between New York and the entire Northeast Corridor).

• The Port Authority continuing as the project sponsor for the new Hudson Tunnel, while the newly established bi-state Gateway Development Commission is constituted.

• Responsibly updating the project’s projected start of major construction to early 2021, since the Federal government has yet to provide a Record of Decision on the EIS that was completed in under 22 months in February of 2018, or to move the project’s funding forward.

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