VTA’s BART to Silicon Valley Completion Costs Rise to $12.2B

The estimated cost of VTA BART to Silicon Valley has risen due to inflation and other factors.

Courtesy of VTA

SAN JOSE, Calif. – The estimated cost of VTA BART to Silicon Valley has risen due to inflation and other factors.

The estimated cost of VTA BART to Silicon Valley has risen due to inflation and other factors. Construction materials, labor, and inflation impacts have risen the cost of the final phase of VTA’s BART to Silicon Valley completion. Originally, $9.3 billion, VTA management confirms the higher estimate of $12.2 billion is still within its means. 

VTA General Manager and CEO, Carolyn Gonot said: “All major U.S. infrastructure projects are, unfortunately, impacted by extreme inflationary costs. . . The good news is that the strong fiscal position of VTA and other funding sources provide a funding plan that can absorb the increase.” In response to maintaining costs, VTA is “doing everything possible as responsible stewards of taxpayer monies to maintain costs at every stage. We will continue to do so in the face of inflationary pressures and hikes in interest rates,” said Gonot.

Said funding comes from state, regional, and local levels and include “the Transit and Intercity Rail Capital Program, Regional Measure 3, 2000 Measure A, and 2016 Measure B.” In addition, the VTA is looking into the FTA New Starts Program for a grant to complete the project’s funding.

Peter Rogoff, former USDOT Under Secretary, Federal Transit Administrator, and Transit CEO said: “New cost estimates for the BART extension fall squarely in line with what we are seeing across the nation. Cost factors including material prices, labor shortages, and rising interest rates are being felt across all infrastructure sectors, not just transit and transportation projects. Market conditions continue to be challenging and dynamic.”

The first phase of the extension from Fremont to North San Jose’s Berryessa neighborhood opened in June of 2020 and came in $100 million under budget. Work is now underway on its final phase which will extend that line an additional six miles with four stations through downtown San Jose into Santa Clara. After updated engineering and risk assessments, the new estimated date for completion pushed back three years to 2036.

A Board meeting took place on October 5^th, and a Board Workshop will take place on October 20^th. Once both of these events have passed, the VTA Board of Directors will receive updates on the cost and schedule.

VTA reported that funding for the completion of BART to Silicon Valley will not take from other VTA projects, and that the VTA “has projected a 10-year balanced budget for the agency without sacrificing service and is in a strong and healthy position to manage inflationary impacts.”

The project will reduce congestion and climate change impacts and “create the transportation system necessary to address increased population growth and foster transit-oriented development, including new market value and affordable housing.”