The Honolulu Authority for Rapid Transportation (HART) has had great interest from the private sector in becoming a partner on Oahu’s rail project. Through industry meetings and outreach, we are aware of at least four or five teams that are already forming in anticipation of a positive decision on P3 and the issuance of a request for proposals.
P3 did not “suddenly” appear, as stated in Sunday’s editorial (“Much doubt cast on P3 rail benefit,” Star-Advertiser, Our View). It has been discussed for years by other elected officials and organizations supportive of the rail project. One month after I became executive director and CEO of HART in September 2017, I advanced the idea and over the next several months, we analyzed and spent considerable time conferring and discussing the merits of P3 with the public and various stakeholders.
The P3 white paper developed by HART did not cost $8.5 million. That figure represents the HART budget for the entirety of advisory services for the 15-month-long P3 procurement process leading to contract award for the City Center guideway and stations, the Pearl Highlands transit center and garage, as well as long-term operations and maintenance.
Ansaldo Honolulu’s $1.4 billion contract is not for five years, but for full design-build and operations and maintenance (O&M), originally contemplated to span at least 17 years. And it has not sued HART but rather filed a construction claim related to project delays with both parties agreeing to work collaboratively to resolve all issues.
HART, its advisers and Ansaldo have all conferred and together we have developed an approach whereby Ansaldo’s remaining City Center and O&M responsibilities will be accomplished as part of a P3 consortium.
Under the Design-Build-Finance-Operate-Maintain (DBFOM) P3 project structure, the private sector partner will provide significant private finance to underpin on-time and on-budget performance. The financing will be paid back from project funding sources over time only when the rail system is actually up and running and meeting a high bar in terms of performance and quality. Land development is not part of the DBFOM structure, but rather the subject of transit-oriented development (TOD) under the leadership of the city and the state.
The P3 for City Center and Pearl Highlands is a project delivery methodology to complete the project and will be accomplished as part of the project budget of $8.165 billion, which has been stable since January 2017. Fares for the rail system will be set by the City Council based on review and recommendations of the city’s Rate Commission, and this has nothing to do with the P3 approach. The Economic Policy Institute study referenced in Sunday’s editorial admits that P3s can be effective, and points out that public funding is still involved, which is the case in Honolulu as well.
Finally, with respect to the Federal Transit Administration, in my most recent meeting with its key officials in Nashville, Tenn., I brought them up to date on the progress we have been making with P3 and they were very pleased to learn that the City Council and Mayor Kirk Caldwell have endorsed its use and that the HART board of directors is poised to also vote its approval at their next board meeting on Thursday.
I have found the Star-Advertiser’s reporting on the rail project in recent months to be fair and accurate. Unfortunately, this editorial missed the mark.
Andrew S. Robbins is executive director/CEO of the Honolulu Authority for Rapid Transportation.
