HART Signs Core Systems Contract With Ansaldo

HART Signs Core Systems Contract With Ansaldo

(Monday, Nov. 28, 2011) – After months of additional review of
the contractor’s financial capacity, the Honolulu Authority for
Rapid Transportation (HART) signed a contract today with Ansaldo
Honolulu JV for the Honolulu rail project’s core systems.

The core systems contract with Ansaldo Honolulu JV includes the
design, construction and delivery of the train vehicles, the train
control systems and the operation and maintenance of the rail
system after installation.

“Our extensive review of Ansaldo Honolulu JV’s finances showed
that they have the capacity to successfully deliver the core
systems contract,” said Toru Hamayasu, HART’s interim executive
director and CEO. “We have strong safeguards in bonds and
guarantees to protect us. But more importantly, I believe we
selected a responsible contractor, with a solid commitment to
delivering a world-class system for Honolulu.”

Honolulu Mayor Peter Carlisle said he was pleased to see the
project move forward. “Rail transit will bring much-needed jobs to
our community during these tough economic times. It will also
provide a solid transportation option and restore quality of life
for our residents who are forced to fight traffic daily, at the
expense of time with their families and friends,” Carlisle said.
“Rail is a green and sensible solution to our gridlocked roads and
highways. It’s time to move forward and respect the people’s

HART Board Chairwoman Carrie Okinaga said having the core
systems contract in place is key to successfully delivering this
project. “Due diligence in assessing the contractor’s technical and
financial capacity was absolutely critical,” she said. “With that
lengthy review completed by the chief procurement officer, staff,
consultants, and board members, and knowing that HART will continue
to monitor this contract and all of our contracts diligently, we
look forward to the project moving forward, with Ansaldo Honolulu
JV as our partner in delivering this project on time and within

The HART board’s Finance and Project Oversight committees also
conducted two separate meetings on Ansaldo’s financial capacity,
and that of its parent company, Finmeccanica, in addition to eight
board meeting discussions. Most recently, the committees held a
lengthy public meeting Friday with Ansaldo’s top officials, who
answered detailed questions about the company’s finances. At both
meetings, Ansaldo officials were questioned extensively about the
joint venture’s financial capacity to fulfill the contract.

“We have confirmation at three levels: the City, State DCCA, and
the State court that the process was in full compliance with the
procurement policies. Additionally, extensive due diligence has
been conducted by HART over the last several months. We are
confident that the procurement officer made a well informed
decision,” said HART Finance Committee Chairman Don Horner and
Project Oversight Committee Chairman Damien Kim.

Ansaldo Honolulu JV was awarded the $1.4-billion core systems
contract in March. That contract includes $574 million for the
design, construction and delivery of 80 train vehicles and train
control systems, and $830 million in operations and maintenance
over a 14-year period. The contract calls for the delivery of the
first 16 vehicles in 2014 and for the remainder in 2018.

The core system’s contract is the latest milestone for the rail
project, with 50 percent of its design and construction contracts
already awarded. The project officially broke ground earlier this
year and utility relocation work is now in full swing in
preparation for the construction of the transit guideway in
February 2012. The first section of the transit system from East
Kapolei to Aloha Stadium is expected to open in 2015; the second
section from East Kapolei to Kalihi in 2017; and the entire system
from East Kapolei to Ala Moana in 2019.

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