Honolulu Phase 1 Contract $90 Million under Plan

Mayor Hannemann announces Phase 1 award.

The first indication that the down economy might produce savings on Honolulu’s rail project came back in August, when Mayor Mufi Hannemann said bids were coming in lower than the forecast. Today’s awarding of the Phase 1 contract confirmed it.

Kiewit Pacific Company submitted the winning bid for the 6.5-mile link from East Kapolei to Pearl Highlands -- $483 million, or about $90 million less than the original estimate.

"This award shows that we have been conservative in our estimate and our financial plan is very sound," Hannemann said in a statement. "This is why we need to get this project going now during a down economy because of the lower costs and the need to create jobs."

In an effort to realize more savings, the City now will solicit bids for Phase 2 two years earlier than planned. That phase will be 3.9 miles from Pearl Highlands to Aloha Stadium.

The project is scheduled to break ground in December; Phase 1 is targeted to be operational by 2012. The entire 20-mile rail line is planned to be operating between East Kapolei and Ala Moana Center in 2019.