Cost climbs by $2.8 billion for California bullet train [View all]
Source: AP
SACRAMENTO, Calif. (AP) — The estimated cost for the first phase of California’s bullet train climbed by 35 percent on Tuesday to $10.6 billion, the latest increase for the ambitious project to run a high-speed rail line from San Francisco to Los Angeles.
The $2.8 billion price hike for a 119-mile (191-kilometer) segment in the Central Valley puts the entire cost of the project at roughly $67 billion, although officials said they hope to recover the newly announced costs later. It was projected to cost $40 billion in 2008 when voters approved bond financing.
“I want the public to count on us to tell the truth, whether it’s good, bad or ugly,” said Dan Richard, chair of the California High Speed Rail Authority’s board. “We’re going to do every single thing in our power to drive these costs down.”
Some of the fresh costs stem from trouble acquiring the rights of way for the track in the Central Valley. The authority entered into construction contracts before fully securing rights of way in all areas, a decision officials said they wouldn’t make again. The decision to enter into contracts quickly was partly due to the need to spend $2.5 billion in federal stimulus money by last fall.
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