$3.5B high-speed rail contract approved after Gavin Newsom adviser named board chair

California’s high-speed rail board approved a controversial business plan as well as a contract worth up to $3.5 billion Monday after Steve Kawa — a longtime political advisor to Gov.Gavin Newsom — was appointed chair of the authority overseeing the bullet train boondoggle.The California High-Speed Rail Authority Board approved a track-and-systems construction contract without opposition, clearing the way for Kiewit, Stacy Witbeck, Herzog – A Joint Venture to begin work on the multi-phase $3.5 billion project to lay track and install electrical systems across the Central Valley.Kawa, who served as his chief of staff when Newsom was mayor of San Francisco, takes over the board at a pivotal moment for the long-delayed bullet train, whose cost had ballooned as high as $231 billion if plans hadn’t been altered and scaled back.

The authority successfully pushed through its 2026 business plan despite objections from local officials, with the initial Central Valley segment projected to cost $34.8 billion while the broader “Phase 1” system pegged at $126 billion.After receiving the gavel, Kawa thanked Newsom for being appointed to the powerful post, which was previously held by Tom Richards.“I have worked for the governor since the 1990s,” Kawa said.“We have worked on many important issues and programs together.

I know how important high speed rail is to him and his belief that this project will result in many benefits and a brighter future for California.I share that belief.”While the meeting was relatively harmonious, board member Jeffrey Worthe questioned whether the authority was about to lock itself into a massive agreement with a sole bidder on a project already beset by delays, rising costs and doubts over transparency.“Last month, I was told there’s only one bidder that could bid that project,” Worthe said.

“Now we’re going to lock ourselves into a single bidder for $3.5 billion with one bid.… Help me decide why that’s a prude...