Honolulu Rail Authority Reconsidering Program

December 20, 2011

Honolulu, Hawaii’s rail authority is considering ditching an insurance program that was supposed to save the city $20 million.

The program would have covered contractors working on the planned 20-mile rail line.

The interim director of the Honolulu Authority for Rapid Transportation said delays have started eating into any potential savings. Toru Hamayasu also said the city is no longer sure the program will save money.

A new study has found that the program, which would bundle insurance for all contractors, might cost the city $10 million more than a traditional insurance model, where contractors purchase insurance individually, Hamayasu said.

The Honolulu Star-Advertiser reports the rail project has not had an umbrella policy since 2009 when the city canceled a contract with a firm that was set to manage the insurance.

The rail authority is now conducting an internal study to determine what the cost of the program would be and decide which model to use, Hamayasu said.

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