The Hudson Tunnel Projects trims $1.4 billion with new financial plan. The project cost for the construction of a new rail tunnel beneath the Hudson River and the comprehensive rehabilitation of the existing 108-year-old tunnel will cost $1.4 billion less than previously anticipated, resulting in an estimated cost of $9.5 billion for the new tunnel and $1.8 billion for the rehabilitation.
The revised figures are included in an updated financial plan submitted to the Federal Transit Administration (FTA). The reduced cost results from work conducted at the request of New York Gov. Andrew Cuomo and New Jersey Gov. Phil Murphy to position the project to advance quickly once the federal permits are issued. This work includes a more advanced level of design, and an intensive value-for-money analysis, including analysis of risks and associated mitigations, a more efficient contracting plan resulting in fewer contract packages, and consideration of delivery methods including design-build. The new Hudson River Tunnel’s level of design is now at the 30 percent threshold – the level typically used to move forward to bid for projects of this type.