Dive Brief:

• The California High Speed Rail Authority has made another change to its initial operating segment, adding at least $1 billion to the first stage of the project, The Los Angeles Times reported.
• Instead of a single segment from Kern County to San Jose, the authority will add an additional 20 miles of a single track to Merced, CA, as well.
• The original plan for its first segment was Burbank-to-Merced, but residents and city officials voiced objections when it was moved north to save time and money.

Dive Insight:

The decision to alter the first segment's route is part of the authority's business plan, which must be submitted to the state Legislature by May 1. The changes come after a period of scrutiny and criticism from the Legislature about the project's overall feasibility. While the authority addressed funding gaps and maintains an upbeat attitude in its written plan, some of its financing sources, including that of its $2 billion pledge, remain shaky. As for the addition of Merced, the authority said it will work to "identify cost savings" in order to pay for it.

Authority officials have spent an inordinate amount of time justifying project financing and expenses to the Legislature after a Times investigative report indicated that the authority had not been honest about the cost or feasibility of the bullet train project. 

Since giving their original bids, several contractors, including Tutor Perini, have tacked on 10%-30%, and more vendors and suppliers are expected to follow suit. Tutor Perini has already submitted a $51.7 million change order and is pricing out at least two more related to project delays, and analysts say those extras could total as much as $95 million.