Maryland Pays $ 250 Million to Purple Line Agreement
The next contractor behind the Purple Line project in Maryland won’t be in place until 2022.
The Purple Line project in Maryland isn’t getting uglier, but the state is taking a blow or two. Maryland will pay the companies overseeing the Purple Line project $ 100 million in a settlement through December 31, and an additional $ 150 million will come from the state at a later date.
However, the settlement did not provide for a point in time when the private concessionaire would have to replace the contractor, which would bring the project back up to speed.
A minimum of two members of the Maryland Board of Public Works must approve the settlement, as required for changes to major government contracts. Approval is expected as it will be difficult to set up another public-private partnership. Experts believe it would take more than a year, and the Purple Line project is already facing long delays. The officials do not know when the line will be operational.
Companies claimed the delays totaled $ 800 million in additional costs. Maryland said the $ 250 million would come from the state’s transportation trust fund.
“The governor looks forward to taking this next step towards completing the Purple Line,” said spokesman Michael Ricci. “These were tough negotiations, but we saved taxpayers $ 550 million from the original claims.”
However, the state may have to pay even more to complete the project, but at the moment officials say that number is not clear. It all depends on how much the new contractor charges to take on the project.
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