Transportation Infrastructure: Progress On and Challenges to Central Artery/Tunnel Project's Costs and Financing
RCED-97-170
Published: Jul 17, 1997. Publicly Released: Aug 06, 1997.
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Highlights
Pursuant to a congressional request, GAO evaluated: (1) the estimated cost of the Central Artery/Tunnel project in Boston, Massachusetts; and (2) Massachusetts' plans for financing the project.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | To provide a more realistic estimate of the cost and financing of the Central Artery/Tunnel project, the Secretary of Transportation should direct the Administrator, Federal Highway Administration (FHwA), when FHwA requests the Commonwealth of Massachusetts to prepare a new Central Artery/Tunnel project finance plan, to include in that plan a revised estimate of the project's costs and funding needs that more closely reflects the state's actual experience with its cost containment program. |
The requester asked the FHwA Executive Director about this recommendation during the agency's FY 1999 appropriations hearing. The Executive Director expressed FHwA's disagreement at that time and informed the Chairman it would not be implementing the recommendation.
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| Department of Transportation | To provide a more realistic estimate of the cost and financing of the Central Artery/Tunnel project, the Secretary of Transportation should direct the Administrator, FHwA, when FHwA requests the Commonwealth of Massachusetts to prepare a new Central Artery/Tunnel project finance plan, to include in that plan a contingency plan for financing the project if costs increase further or if the sources of financing are not sufficient. |
Massachusetts last submitted an updated Central Artery/Tunnel project finance plan to FHwA in October 1998. This finance plan update included a contingency plan to pledge a portion of the state's gasoline tax to the project in the event that sources of financing were less than expected. However, this plan was based on the current cost estimate of $10.8 billion. The state has not and does not plan to develop a contingency plan to cover shortfalls in the event of project cost increases, as GAO has recommended.
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Topics
Cost controlCost sharing (finance)Federal aid for highwaysFuture budget projectionsHighway planningIntergovernmental fiscal relationsMunicipal bondsPublic roads or highwaysRoad constructionWorkers compensation