November 30, 2000

Boston's 'Big Dig' gets big bucks

BOSTON (AP) -- Federal officials have approved a nearly $14.1 billion funding plan for the Big Dig, closing a chapter on a fiscal debacle that led to firings and criminal probes of the massive highway project.

The Federal Highway Administration and the U.S. Department of Transportation's Office of Inspector General notified state officials Tuesday that they have accepted the state's plan to pay for the project.

The financial blueprint, reportedly finished Oct. 1, pins the project's cost at $14.075 billion, caps the federal contribution at $8.549 billion, and sets completion dates for various project stages.

The state also agreed to submit its accounting of project finances to federal regulators yearly.

The state has submitted four financing plans to federal officials in the last year, outlining how it plans to complete the project. This is the first time in two years that federal agencies have approved a top-to-bottom spending plan.

"It's a significant milestone," Turnpike Authority Chairman Andrew Natsios said. "This was hovering over us as sort of a dark cloud, and I think this sort of removes the cloud."

Known officially as the Central Artery/Third Harbor Tunnel Project, the Big Dig will bury three miles of Interstate 93 beneath downtown Boston. The endeavor, designed to reduce traffic congestion in Boston, is one of the most complicated and expensive road projects in the nation's history.

The letter from federal authorities approving the plan credited the state for reining in the project. But it also reminded the state of problems that beset former Turnpike chairman James Kerasiotes, eventually leading to his dismissal, congressional hearings and probes of the project's finances.

"Your continued efforts to move this project forward and share information openly and frankly with us, other public agencies and the general public are very much appreciated," wrote Vincent Schimmoller of the Federal Highway Administration.

Natsios needed approval of the plan by Dec. 1, in order to receive $445 million in federal funds for next year's funding.