Mass transit : review of the South Boston piers transitway finance plan

906870PDFResearch PaperPublic transitEconomic developmentBus transitTunnelingOperationsFinancingConstructionTransit authoritiesBoston (Massachusetts)United States. General Accounting OfficeMassachusetts Bay Transportation AuthorityUnited States. Federal Transit AdministrationNTL-PUBLIC TRANSPORTATION-Advanced Public Transit SystemsNTL-PUBLIC TRANSPORTATION-Transit Planning and PolicyNTL-PUBLIC TRANSPORTATION-Bus TransportationUS Transportation CollectionThe Massachusetts Bay Transportation Authority (MBTA) is constructing a 1.5-mile underground transitway to connect its existing transit system with the South Boston Piers area, which is undergoing significant economic development. The South Boston Piers Transitway project is to be built in two phases. The first phase is a 1-mile, three-station bus tunnel between South Station and Boston's World Trade Center. In November 1994, the Federal Transit Administration (FTA) entered into a full funding grant agreement with MBTA, under which the federal government would provide $331 million (80 percent) of the projected $413 million total cost for the project's first phase, which was to be completed in December 2000. To date, MBTA has received almost $242 million of that amount. However, this phase has experienced significant cost increases and schedule delays; currently, the project is 3 years behind schedule and its estimated total cost has risen to $601 million. The report also directed GAO and the Department of Transportation's Inspector General to conduct independent analyses of the plan and report to the House and Senate Committees on Appropriations. Accordingly, this report provides information on (1) the financing of the project, (2) the remaining risks to the project's cost and schedule, and (3) MBTA's ability to operate and finance its transit system