HART Will Delay Ansaldo Contract11/17/2011
UPDATED 11/17/11 2:27 p.m.
The financial questions about would-be rail contractor Ansaldo are serious enough that Honolulu will delay executing the $1.4 billion core systems contract and will conduct additional due diligence.
Honolulu Authority for Rapid Transportation Interim Executive Director Toru Hamayasu told the board of directors Thursday morning that reports in Bloomberg and the Wall Street Journal this week about Finmeccanica's willingness to sell Ansaldo STS and the parent company's own financial health "raised a new concern for Honolulu."
"HART will conduct additional due diligence," Hamayasu said. "If the results are favorable, we will execute the contract."
A representative of Ansaldo declined to comment on the decision immediately after the meeting.