The Daily Journal and the Daily Post had near identical articles about a the lack of private investors for high-cost rail and those investors' concerns as sleuthed out by the AP
Businesses that might bid to build a high-speed rail network across California are questioning whether there will be enough government funding to complete the complex and ambitious project.
That picture emerged from documents the companies submitted to the state rail authority overseeing the project, which solicited ideas for how it should approach building a first segment of 300 miles of track by 2022.
In response it received 36 submissions from firms including global construction and engineering giants AECOM, Siemens and Parsons. The rail authority released the documents to the Associated Press under a Public Records Act request.
This will not come as news to anyone reading the Voice, but this wrinkle is new
In the documents, many firms suggested breaking the project up into smaller contracts, typically in the $3 billion to $5 billion range. Anything much larger could scare off even the world’s largest construction and financing firms, the respondents said.
“The market cannot absorb a single $20 billion contract,” a group led by ACS Infrastructure Development, Inc. wrote, arguing that the risk to a construction firm would be too high and that “financial institutions would not invest into a project of such unprecedented scale and cost.”
This smacks of desperation all around. And yet the SacBee is reporting
State high speed rail officials confirmed last week they plan to call for bids from high-speed rail companies in mid-2016 to build the sleek aluminum trains that will run at 200-plus miles per hour between San Francisco and Los Angeles. The state is expected to need about $3.2 billion worth of train “rolling stock” to serve the new system.
The cart would appear to way in front of the horse here.
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