Cost of MBTA Green Line Project Jumps Up By $1B

The project, which calls for a five-mile, six stop expansion and new light rail vehicles, could now be in jeopardy.

The project, which would add seven new trolley stations in East Cambridge, Somerville and Medford, was recently estimated at $2 billion, not including the cost of financing.

Another wrinkle in the Commonwealth’s willingness to fund the project is where the state’s side of the money will come from: Special Obligation Transit Bonds, the same funding source being used to buy much needed new Red and Orange Line cars for the subway.

Yesterday, MBTA officials announced they might need another billion dollars to complete the project, that’s on top of the $1.99 billion dollar price tag.

With no action, other estimates are also expected to rise in future phases of the project, DePaola said.

State officials blamed the cost explosions partly on Boston’s “hot” construction market, which is pushing costs above estimates, which were based on recession-era pricing. The approach, which DePaola said the feds encouraged the state to take, allows the project to do design and construction at the same time, saving time. While the T believes that portion could cost $487 million, its main contractor, White-Skanska-Kiewit has estimated that the portion will cost almost double that – $889 million.

The revelations of the higher cost estimates, discussed during a meeting of the T’s newly created fiscal and management control board, will likely create even more delays for the long sought-after project.

“We can’t afford it the way it’s been now laid out”, said State Transportation Secretary Stephanie Pollack. The state is legally obligated to complete the project as part of a settlement related to the Big Dig.

According to MBTA Interim General Manager Frank DePaola, the project could end up over $1 million over budget.

State transportation officials, including the board hand-picked by Gov. Charlie Baker, will now have to decide whether to go through the the Green Line Extension project or if it can’t be saved with cost mitigation efforts. Pollack warned that stopping the project could trigger litigation from the Department of Environmental Protection or other groups. “It runs a risk”, she said.