Funding for harbor
improvements changes

State officials have changed the method of funding $40 million in harbor improvements to ensure that the proposed interisland ferry pays its share.

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The state had originally said it would pay for the $40 million in harbor and dock construction, with Gov. Linda Lingle saying it would be "repaid over time by the Hawaii Superferry."

But yesterday during a Senate Transportation Committee hearing, Transportation Director Rod Haraga said the state would negotiate fees and charges that would pay for the construction bonds and the interest owed on the bonds.

"We will get the money from Superferry to pay off the bond debt by establishing rates and charges for passengers and vehicles and wharfage fees to generate the money," Haraga said.

Committee Chairwoman Lorraine Inouye said the new plan to move funding from general obligation to reimbursable general obligation bonds satisfied a lot of senators' worries that the state would be left liable for empty docks if the ferry failed.

"I think I feel better because the initial floating bonds was a concern to me and others," said Inouye (D, Hilo-Honokaa).

John Garibaldi, Superferry chief executive, said the company had always included in their financial plans paying off the state construction debt.

"All along, Hawaii Superferry has been planning on paying its fair share. Our plans have always centered on the state providing the infrastructure that we will be paying for, and I'm glad that was clarified," Garibaldi said.

The Senate hearing was held on Senate Bill 1785 to require Hawaii Superferry to prepare an environmental impact statement, a study that would take so long it would kill the project, according to Garibaldi.

"Hawaii Superferry complies with all Hawaii and federal environmental regulations and should not be singled out to perform studies that existing and new shipping and cruise lines do not need to do," Garibaldi told the committee.

Republican Sen. Fred Hemmings defended the firm, saying Matson shipping company and Young Brothers barge company are not required to file a detailed environmental report for their shipping plans.

Environmentalists, including Donald Reeser, superintendent of Haleakala National Park, said the Superferry could spread noxious plants and pets between the islands and that the ferry's plans should be studied.

The Park Service, Reeser said, "would like to see provisions for full mitigation of the impacts of increased risk for transport of invasive species."

John Harrison, with the University of Hawaii Environmental Center, said that because the project will use state land and state money and will partially fall within the state conservation district, it should be assessed. Garibaldi argued that delays to the project would "cause an immediate failure."

Financial agreements for $200 million in private funding for the project require all clearances and government permits to be in place by June 30, according to Garibaldi.