HART signs core systems contract with Ansaldo Honolulu JV

The Honolulu Authority for Rapid Transportation finalized the core systems contract for Honolulu's rail project Nov. 28, with Ansaldo Honolulu JV, moving the project forward with the design and construction of the rail vehicles and the train control system. "Our extensive review of Ansaldo Honolulu JV's finances showed that they have the capacity to successfully deliver the core systems contract," said Toru Hamayasu, HART's interim executive director and CEO. "We have strong safeguards in bonds and guarantees to protect us. But more importantly, I believe we selected a responsible contractor with a solid commitment to delivering a world-class system for Honolulu." The HART board's Finance and Project Oversight committees also conducted two separate meetings on Ansaldo's financial capacity and that of its parent company, Finmeccanica, in addition to eight board meeting discussions. Most recently, the committees held a lengthy public meeting Nov. 25, with Ansaldo's top officials, who answered detailed questions about the company's finances and the joint venture's financial capacity to fulfill the contract. "We have confirmation at three levels: the city, state DCCA and the state court that the process was in full compliance with the procurement policies. Additionally, extensive due diligence has been conducted by HART over the past several months. We are confident that the procurement officer made a well-informed decision," said HART Finance Committee Chairman Don Horner and Project Oversight Committee Chairman Damien Kim. Ansaldo Honolulu JV was awarded the $1.4-billion core systems contract in March. That contract includes $574 million for the design, construction and delivery of 80 train vehicles and train control systems and $830 million in operations and maintenance over a 14-year period. The contract calls for the delivery of the first 16 vehicles in 2014 and for the remainder in 2018. The core system's contract is the latest milestone for the rail project, with 50 percent of its design and construction contracts already awarded. The project officially broke ground earlier this year and utility relocation work is now in full swing in preparation for the construction of the transit guideway in February 2012. The first section of the transit system from East Kapolei to Aloha Stadium is expected to open in 2015; the second section from East Kapolei to Kalihi in 2017 and the entire system from East Kapolei to Ala Moana in 2019.