Cost of Orange, Red Line trains from CRRC could exceed $1 billion

Massachusetts may be paying an additional $148 million to China-based company CRRC for new Red and Orange Line trains the state ordered years ago—bringing the total costs for the long-delayed project to more than $1 billion.

Why it matters: The deal, once considered an economical option, comes as the MBTA struggles with multi-billion-dollar debt and massive budget deficits.

State of play: The MBTA board of directors yesterday approved a plan to pay CRRC up to $148 million more to deliver hundreds of new Red and Orange line cars by 2027, potentially pushing the total cost past $1 billion.

• The Orange Line cars would be due by September 2025 and the Red Line cars by the end of 2027, the State House News Service reported.
• The manufacturer was supposed to deliver all 404 cars by September, but T has received just 130 cars, per the Boston Globe .

The tentative deal would also waive some $90 million in penalties CRRC faces for delays.

• CRRC would still have to pay $37 million unless it meets new milestones set under the proposed settlement, per SHNS.

Threat level: The deal comes as the T struggles to remain financially stable year-to-year.

• The T's fare profits have dipped, leading to an expected loss of $15.5 billion in the agency's overall revenue, per WCVB .
• The T also has more than $4 billion in debt tied to the Big Dig's mitigation plan.

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