Brightline West is making progress toward beginning construction on its 218-mile high-speed rail line connecting Las Vegas and Southern California. Eric Scheetz, the senior project manager from the Nevada Department of Transportation (NDOT), announced that they anticipate starting the heavy construction within a few months. However, before construction can commence, Brightline West needs to finalize its financing, design, and contractor agreements.
The project has secured a $3 billion grant from the Federal Railroad Administration, a significant milestone for Nevada. The remaining $9 billion required for the project is expected to come from private equity and debt. Brightline has $5.5 billion in private activity bonding authority and is currently working to sell $2.5 billion in private activity bonds. The remaining costs will likely be covered by a privately financed bank loan.
Scheetz anticipates an update on the financial aspects soon, which, if favorable, will allow the project to begin. NDOT’s contract with Brightline requires confirmation of secured financing before reimbursement through the $3 billion grant.
The project is expected to take about four years to complete, with the construction occurring in segments. NDOT will issue a right-of-way occupancy permit to allow work to begin in Nevada once the design is complete and financing is secured.
The $12 billion project is divided into nine segments, with each segment having separate contracts. These contracts vary in value and are based on geography and location to manage capacity and expertise.
NDOT has a subrecipient agreement with Brightline, transferring project liability to them, and an independent engineer to oversee construction on the California side. Managing risk is a priority to ensure the project is completed as promised.
The rail line is expected to operate 37 trains daily, catering to travelers from the L.A. area. The Rancho Cucamonga station in California will feature a 3,700-space parking garage and connect with the Metrolink rail line, facilitating travel from downtown L.A. to Las Vegas.