Federal Government Frees $165 Million For Urban Train

[Ecuajey]

Federal Government Frees $165 Million For Urban Train

March 24, 2002
Copyright © 2002 Associated Press.
All Rights Reserved.

SAN JUAN (AP) - Transportation and Public Works Secretary Jose Izquierdo announced Sunday that the federal government freed $165 million destined to the Urban Train that had been retained in 2000 following the discovery of construction deficiencies in that project.

The federal government had refused to free those funds after it learned of the construction deficiencies in 44 columns, the delay in the installation of the rails, and the lack of an integrated construction itinerary which had delayed the project for three years, Izquierdo said.

A federal audit had also revealed irregularities in the installation of the routes within the Rio Piedras tunnel.

For his part, Roads and Highways Authority Director Fernando Fagundo said the Department of Transportation and Public Works has regained the trust of the federal government and applauded the efforts of Resident Commissioner Anibal Acevedo Vila in favor of obtaining additional federal funding for the Urban Train.

During the time that the U.S. government had retained the funds, the project was funded with a bond emission of the authority. This resulted in losses of up to $1 million that were paid by the department, public officials explained.

Although the federal government estimates the project will cost $2.03 billion, Fagundo said the department intends to only use $1.9 billion.

The first phase of the Urban Train has been completed by 87% and it is estimated to be fully finished in September 2003.