The Honolulu rail authority has tentatively agreed to pay contractor Ansaldo Honolulu JV $160 million as compensation for years of construction delays on the 20-mile rail line.

Assuming the Honolulu Authority for Rapid Transportation board approves the proposed settlement Thursday, that will bring the total pledged or paid to Ansaldo for construction delays to more than $202.6 million to date.

HART CEO Andrew Robbins said the latest proposed settlement is part of an effort to “clear out these old issues so that we can more forward with the project.”

“We’re getting into a public-private partnership approach to finishing the project, and we do envision Ansaldo being a long-term partner of both HART’s and the city’s,” Robbins said. He described the settlement as “far below what they originally asked for, and then what they originally filed.”

Last week the Hawaii State Auditor reported it tallied more than $354 million in delay claims on rail contracts, including some claims already paid out to Ansaldo. If the HART board approves this latest claim, that will bring the total in delay claims pledged or paid out to contractors on the rail project to more than $514 million.

The auditor attributed those delays to the city’s decision to prematurely award construction and other contracts for the project.

Robbins said the new settlement will “not add one dollar” to the current budget for rail because the rail authority had already build into its financial plan a sum to resolve the Ansaldo delay claim. He declined to say how much HART had set aside for the claim but said the proposed settlement is “well within” that budget.

The elevated rail line from East Kapolei to Ala Moana Center including 21 stations is expected to cost a total of $9.2 billion including finance charges.

Cliff Slater, a longtime opponent of the Honolulu rail project, said he is surprised the Federal Transit Administration hasn’t ended its support for rail already. The FTA pledged in 2012 to contribute $1.55 billion to the Honolulu rail project, but “I mean, how much of a joke does it have to be before they cut off the funding?”

“Most cities in the United States have built rail lines for less than what we have already, so far, had in delay claims,” Slater said.

Robbins described the settlement as “a very good deal.”

“One of my main jobs is to protect the taxpayer and look after the public interest,” he said. “We have to realize that the project has been delayed and that there are legitimate claims by the contractor in terms of delay.”

Ansaldo said in a statement that “we are pleased that our discussions with HART have resulted in an agreement.” The written statement from Ansaldo Managing Director Enrico Fontana added, “We share one goal: The creation of a world-class transit system for Honolulu that eases traffic congestion and reduces carbon emissions.”

The city in 2011 signed a $1.4 billion “core systems” contract with Ansaldo, the largest contract in city history.

Under that agreement Ansaldo was to be paid $574 million to design and construct the train-control system for the Honolulu rail project and deliver 80 train vehicles. An additional $830 million is to be paid to Ansaldo under the contract for operations and maintenance of the rail line over 14 years.

The new settlement applies only to the agreement to have Ansaldo design and build the driverless train control system, Robbins said.

That work that was supposed to be completed by the end of this year, but construction of the elevated rail line is now about six years behind schedule. The city now does not expect to complete the 20-mile rail line until late 2025, but even that date is not certain.

For Ansaldo that means the company has been unable to install the equipment necessary to operate the rail system on the guideway because much of the guideway hasn’t been built yet. Those delays increased costs for Ansaldo, prompting the company to file the delay claim.

Sources told the Honolulu Star-Advertiser last year that Ansaldo warned HART officials in 2016 it planned to seek $200 million in delay claims. However, HART officials said an Ansaldo representative initially notified HART last March the company would seek more than $400 million, but last fall the company filed a written claim for $275 million.

HART then bargained that sum down to $160 million, but the rail authority does not plan to pay out that money all at once, he said. Payments will be released as Ansaldo meets project milestones, starting with when the rail project’s Maintenance &Storage Facility near Leeward Community College becomes completely operational.

Other milestones that will trigger additional payments include the interim opening of the first 10.75 miles of the rail line, which is scheduled for next year; installation of the train control system in the last four stations; and the opening of the entire rail line in 2025.

Robbins said HART has other claims pending, including claims by contractors who are building rail stations, but did not say how much those claims might cost. Rail officials also expect Ansaldo will file a more modest delay claim in connection with the operations and maintenance portion of its contract with the city.