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HART has, and continues to be, diligent in searching for ways to reduce the funding shortfall – and ultimately to get the Project to Ala Moana. Some ways that the shortfall is being addressed:

  • Internal Cost Reductions: HART continues to look for ways to reduce its internal costs, including ways to improve efficiencies of internal processes, eliminate redundancies and better manage costs. An example is a 2021 streamlining of the organizational structure that will save $150–200 million over the remaining life of the project.
  • Efficient Construction: Ways of reducing construction-related costs are also being evaluated. An example is the decision to implement a shift of a section of the guideway route along Dillingham Boulevard from the middle of the street to the mauka side, thereby eliminating the need to relocate certain utilities. This “mauka shift” will save approximately $150 million.
  • Risk Mitigation: Risk reduction actions have been implemented, and are evaluated on an on-going basis, which will reduce future costs of procurement. A good example of risk mitigation is the work by HART to get the utility designs completed and approved before awarding the two recent utility relocation contracts. This work will save construction costs and also shorten the work schedule, adding to the construction savings. In the past, HART had awarded contracts without approved final designs, which is a considerable risk to the contractors proposing on the construction work.
  • Seeking New Funding:
    • In 2022, HART received $70 million in federal COVID relief funds to partially address funding lost due to the pandemic.
    • In 2022, HART will begin receiving funding from a new Oahu-based Transient Accommodations Tax.
    • Other sources of funding will also be explored.

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