Honolulu Authority for Rapid Transportation board members said Thursday they want the winning rail car bidder to answer questions about its financial stability now that protests over the awarding of the contract have been denied.
Ansaldo Honolulu won in March the $1.45 billion contract to design, build, operate and maintain the rail cars. But its parent company, Italian conglomerate Finmeccanica, said in late July it will either restructure or sell off AnsaldoBreda, one of the partners that make up Ansaldo Honolulu.
Rail authority members had said their hands were tied earlier because of contract protests lodged by losing bidders Bombardier Transportation and Sumitomo Corp. of America. But because both protests have been denied, board members agreed at their monthly meeting Thursday that they want answers from Ansaldo executives.
"It’s the responsibility of the finance committee to review this," said First Hawaiian Bank Chairman Don Horner, head of the rail authority’s finance committee.
"Our area of concern is their ability to complete the project and the amount of support they have from the parent company in regards to car building," board member Keslie Hui said.
HART interim Executive Director Toru Hamayasu said the agency is launching its own investigation into Ansaldo Honolulu’s finances. The company said its stability remains the same as it was a year and a half ago, when it first submitted financials in response to the first request for proposals.
The board met at Kapolei Hale and received a visit from U.S. Sen. Daniel Inouye.
Inouye, chairman of the Senate Appropriations Committee and a proponent of rail for decades, offered words of encouragement for the board and urged members to be transparent.
"If something goes haywire, say so," Inouye said, "because with all the communications and high technology we have, if you make a mistake, people know about it. So remind the folks that you’re transparent, your pencils are sharp and you realize what the circumstances are. After all, you are the stewards. We’re counting on you."
When asked whether he had any concerns about Ansaldo Honolulu, Inouye said he didn’t know all the facts, but that he trusts the board to handle the contract.
The board asked Inouye how confident he is in obtaining federal funding. He said he couldn’t guarantee anything and that no one could have predicted the country would still be at war in Afghanistan.
"All I can say is I’m going to do my utmost," Inouye said. "Even in these difficult times, if I can’t deliver, then I should be cursed."
Inouye said he hopes the federal lawsuit launched by prominent rail opponents wouldn’t delay the project further.
"I’ve been in this political business for over half a century," he said, "and I find that it’s very easy to oppose. It’s much more difficult to be for something, because you gotta stand up and take a lot of crap."
