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August 8, 2003

Abercrombie announces $6.9 billion Army housing contract

Washington, D.C. - - Calling it a “torrent of cash for Hawaii”, Congressman Neil Abercrombie announced today that the Army has chosen a contractor for its $6.9 billion Residential Community Initiative (RCI), which covers renovation and/or replacement of 7,700 Army housing units on Oahu, and operating and maintaining them for 50 years. 

The contractor, Actus Lend Lease LLC, of Napa, California, is expected to subcontract a substantial portion of the work to Hawaii firms and to finance the project with loans from Hawaii banks. 

The first phase of the work is covered by a $350,000 contract issued today to create the Community Development and Management Plan for the project. 

The housing areas where the work will take place are located on Schofield Barracks, Tripler Army Medical Center, Helemano Military Reservation, Fort Shafter, Wheeler Army Air Field, Aliamanu Military Reservation, and the family housing at Kia’i Kai Hale recently transferred from the Coast Guard to the Army. 

The RCI partnership signing ceremony is scheduled for September 12 at Schofield Barracks. 

“This project means a torrent of cash for Hawaii,” said Abercrombie.  “It’s a welcome infusion for our state economy, especially since the 50 year lifespan of the partnership means a stable cash flow over a long period of time.   

“I would have preferred that the award go to a Hawaii-based company, but Actus executives tell me they intend to subcontract the work to Hawaii firms to the maximum extent possible.  They’ve also told me they’ll go to Hawaii banks for the financing, and that will be a big boost for our financial institutions.   I’ll be monitoring this work in the years ahead to hold them to their commitments.”

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