Report on the October 2001 Finance Plan for the Central Artery/Tunnel Project
We issued our report regarding the October 2001 Finance Plan for the Central Artery/Tunnel Project, in Boston, MA. Our review found that presentations of cost, funding, schedule, cash flow, and other factors have improved over previous finance plans and generally meet FHWA’s guidance. Overall, we found that, in the last 2 years, senior management has improved the project’s financial management and reporting. However, we found several items that need to be adjusted:
- cost estimates to reflect $150 million in insurance costs and $12 million in rent for replacement space when the project headquarters is sold; and
- the plan needs to provide more information about risks to the project schedule.
The project agreed to make those adjustments. Because the project indicated they intended to pay the rental costs out of contingency funding, we concluded that the estimated cost of the project should be $14.625 billion.