Honolulu Mayor Mufi Hannemann announced today that Kiewit Pacific Company was awarded the design-build contract for construction of the first segment of Honolulu’s rail-transit project and that it will save the city $90 million.

The city will seek proposals Nov. 18 for the next phase of the project, two years earlier than planned to capitalize on favorable market conditions.
The initial 6.5-mile segment of the transit route will run from Kapolei to Pearl Highlands near Leeward Community College. Kiewit’s proposal was the lowest at $480 million, the city said; the first phase was expected to cost about $570 million.
The contract includes construction of the elevated guideway, installation of the train tracks and restoration of the road surface along the route. The train stations along the rail route are to be constructed in separate future contracts.
Separate contracts are scheduled to be awarded early next year for the train storage and maintenance facility in Waipahu and one for the manufacturing and shipment of the core systems that includes the train vehicles.

Train service for the first leg of the transit route is scheduled to begin in 2012, with full service along the entire 20-mile route from East Kapolei to Ala Moana in 2019.