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Honolulu signs rail contract with Italian company

Honolulu signs rail contract with Italian company

Honolulu's rail authority has signed a $1.4 billion contract with Ansaldo Honolulu for the design and construction of train cars for a planned commuter rail line. The contract also covers the maintenance and operation of the rail line after it's built.
The Honolulu Authority for Rapid Transportation had delayed signing the contract so officials could examine the company's finances more closely.
But the authority's interim director, Toru Hamayasu, said in a statement Monday that Ansaldo Honolulu's finances showed it has the capacity to deliver the contract.
The financial problems of Ansaldo's parent company, the Italian construction and engineering firm Finmeccanica, prompted the financial review.
Finmeccanica is not a party to the rail contract, but is a guarantor. The company's stock price has fallen 65 percent in the past year.