Honolulu’s proposed $5.5 billion train project reached a key milestone today. However, the project still must overcome several hurdles before construction can begin as scheduled in December.

The 20-mile East Kapolei to Ala Moana project receiving federal permission to begin the preliminary engineering phase of the project, according to U.S. Sen. Daniel Inouye. During preliminary engineering, the city will finalize management plans, refine the route's alignment and project costs, and further identify benefits and impacts.
“This is a critical federal milestone and an important accomplishment in the development of Honolulu’s rail transit project,” Inouye said in a news release. “The competition for Preliminary Engineering among our nation’s cities is fierce.”
The city’s entry into preliminary engineering was delayed by at least six months in part because of a February decision to alter the train’s route to pass through the airport district rather than the Salt Lake area.
The next major milestone for the project is a release of a final environmental impact statement, which the city has said should occur this month. If all goes well, the city expects to receive a so called Record of Decision approximately five weeks later.
The city also will need a "letter of no prejudice" from the Federal Transit Administration. That gives the city permission to spend city money on the project without jeopardizing the possible future influx of federal funds. The city needs $1.55 billion in federal funds to pay for the project. However, the city doesn't expect to find out whether it will get that money until early 2011.
The city also will need to award the biggest transit-related contract so far — a $550 million to $600 million deal to design and build an elevated six-mile guideway from East Kapolei to Leeward Community College. That estimated amount excludes an unspecified amount to cover contingency costs.
City administration officials also will eventually need City Council authorization to issue up to $1 billon in bonds needed to complete the project. The city has about $154 million in transit tax collections in the bank, according to an August version of the city's financial plan.
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.