How Will CA fund HSR?

An entry from the Transport Politic deals with the potential financing of CA’s HSR system.

You can read the original entry here.

The article goes in depth about the lack of need for California to use Public Private Partnerships to fund the construction of HSR, like other international cities London and Taiwan.

Instead, due to the cost, the entry argues against letting private corporations into the HSR pie and help fund the costs, because they’re donations or contributions would be so minuscule compared to the money that will come from the Government.

The California High-Speed Rail Authority projects that it will need about 33 billion in 2008 dollars to complete its initial San Francisco-Anaheim link, a reasonable estimate considering the cost of peer systems. In addition to the $9 billion in state funds devoted to the project by last November’s referendum, the Authority is banking on $2-3 billion in local money and $12-16 billion in federal contributions. Because this aid won’t be enough to cover the full costs of the line, the state will also demand $6.5-7.5 billion in help from public/private partnerships.

In the big picture, the entry is probably right.  The benefits lost from rushing into a public private partnership for the construction of this project will make that tiny 20% look minuscule in the long run.


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