Impact of COVID-19 Pandemic on US Infrastructure- Part 5

Impact of COVID-19 Pandemic on US Infrastructure- Part 5

It has been just over a year since the COVID-19 pandemic hit American shores in every way possible. Just like other industries, US infrastructure also has been damaged as covered by previous articles in this blog. It goes without saying that there would be deficits in revenue, major projects’ progress being halted or cancelled completely as well as struggles in approving budgets for new projects.

So what are some possible solutions for this? “DFIs can, for example, assist governments in diagnosing risks early to mitigate the virus’ impacts on project portfolios through expert support, training, and tools. Projects in pipeline should be re-reviewed often in this changing environment and projects under construction or in operation should be reexamined for any contractual remedies available to mitigate the effect of potential delay and funding needs. Where governments lack the expertise and resources to take this on, DFIs can step in to help” (Worldbank).

An infographic showing the impact of the virus on the construction and infrastructure markets (Image Credits: Businesswire)

Honolulu Rail Transit

Honolulu Rail Transit

Honolulu has been slowly growing as an important city which would need a rail transit system for its own. For a long time, there has been a debate on whether such a network is required and if so, would it be a light rail system or a heavy system. Anyways, a 20-mile system with 21 stations for $5.2 billion was announced in 2012. 

“But by this past fall Honolulu Mayor Kirk Caldwell was projecting the rail line will not be done until 2033, and will cost an astonishing $11 billion...that marks the third time since 2012 the city has announced huge rail cost overruns, and this budget shortfall may be more difficult to resolve than the previous two. A key lawmaker says it will be “too difficult” for the state to step in for a third time with a financial bailout for the city rail project” (Civilbeat).

The project definitely has its share of benefits as it would be a big uplift for the economic development of the region? But at what cost? This blog would continue to cover this project in the upcoming months. 

A picture of the rail network (Image Credits: Civilbeat)

Essex Crossing

 Essex Crossing

Essex Crossing is expected to be one of the projects which is going to transform New York City forever. The entire reasoning behind the project is to create over a thousand residential units, out of which a good number would be kept affordable to a wide range of incomes. The complex would also host over 700,000 square feet of commercial space, 350,000 square feet of office space, 100,000 square feet of community space, and 100,000 square feet of greenery space including a new public park. 

“The project’s developers expect to rake in plenty of cash from all the market-rate condos, apartment rentals and commercial office and retail spaces. Rising real estate values on the Lower East Side have accelerated neighborhood gentrification but also helped subsidize the project’s abundance of affordable housing and community services” (NYTimes).

A picture of the planned development (Image Credits: NY.Curbed)