Categorized | Government, News

State moving on $1.5B in construction projects

MEDIA RELEASE

Gov. Linda Lingle has announced the state has advanced nearly $1.5 billion in capital improvement projects (CIP) statewide since her Administration launched a plan last December to accelerate public infrastructure construction as part of a comprehensive effort to stimulate the economy and create jobs.

During the last year, the state has successfully opened bids for, awarded contracts for or started construction on 681 capital improvement projects, totaling $1,489,597,629.

In addition, the state hopes to put out to bid, an additional 1,021 projects totaling $314,125,881 by end of the year. The state is counting on the Department of Education for the majority of these projects (997 projects totaling $209,226,281).

The original 18-month plan launched one year ago included approximately 1,500 capital improvement projects totaling $1.8 billion which were previously budgeted and approved by the Legislature. While the state has focused on these 1,500 projects, work is also moving forward on another 800 capital improvement projects.

In all, the state’s expanded plans now include 2,308 construction projects, totaling $4,501,794,013.

“While the state is taking steps to address the immediate need to revitalize our economy and address the budget shortfall, it is critical that we continue to focus on the repair and maintenance of our public buildings and facilities as well as invest in modernization of our public infrastructure,” Lingle said.

“This focused capital improvement project plan, which is a collaborative partnership between the state, the construction industry, trade unions and counties, is helping to stimulate our local economy and create jobs for our residents while positioning Hawaii for the future,” she said.

Projects Advancing by Department – # of Projects – Cost

Dept. of Accounting and General Services – 109 – $188,848,081

Dept. of Agriculture – 6 – $14,108,465

Dept. of Business, Economic Development and Tourism – 4 – $7,347,733

Dept. of Defense – 7 – $4,486,800

Dept. of Education – 322 – $245,482,444

Dept. of Hawaiian Home Lands – 26 – $195,474,059

Dept. of Human Services – 18 – $21,093,621

Dept. of Land and Natural Resources – 42 – $58,055,991

Dept. of Transportation – 69 – $581,681,175

University of Hawaii – 78 – $173,019,260

Total – 681 – $1,489,597,629

Projects Advancing by Island – # of Projects – Cost

Oahu – 402 – $813,408,198

Hawaii – 126 – $365,801,799

Maui – 77 – $179,435,830

Kauai – 44 – $86,756,498

Molokai – 20 – $18,791,677

Lanai – 7 – $7,598,213

Statewide projects – 5 – $17,805,414

Total – 681 – $1,489,597,629

The state estimates the $1.5 billion in capital improvement projects has generated approximately 19,216 direct and indirect jobs statewide in the construction industry and other related sectors. This is based on a Department of Business, Economic Development and Tourism formula which estimates that for every million dollars invested, 12.9 direct and indirect jobs are created.

The number of direct construction jobs created by the capital improvement projects is approximately 4,469.  This is based on a formula used by the construction industry which estimates that for every million dollars, three direct construction jobs are created.

“The state will continue its focus on starting approved CIP projects as quickly as possible in order to create more jobs for members of our construction industry and related sectors,” said Department of Accounting and General Services (DAGS) director and strike force chairman, Russ Saito.

“The slowdown in the economy has produced an extremely competitive bidding climate, resulting in bids that are lower than originally estimated,” Saito said. “If the projects that have been advanced had come in at the prices originally estimated, the 681 projects would have involved $1.613 billion in construction.”

Investing in capital improvement projects and the modernization of Hawaii’s infrastructure is a major part of the governor’s five-point action plan to stimulate the economy.

Other components of the five-point plan include increasing tourism marketing and outreach; lowering business fees and providing tax relief; attracting private investment, especially in renewable energy technology; and maximizing federal dollars and partnerships.

Progress of all the capital improvement projects can be tracked on the governor’s Web site at www.hawaii.gov/cip

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