Losing rail bidders paid $2 million each

Reported by: CBS47 News
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Updated: 2/05 9:39 am
Opponents of the state's high speed rail have one more reason to be upset after it was announced losing bidders will be compensated.

The California High Speed Rail Authority is giving the four losing bidders what it calls a "stipend" of two million dollars. 

Rail officials say they offered the stipend in order to attract bidders and get more competitively-priced bids.

Critics say it's another example of mismanagement.

Republican State Assemblywoman Diane Harkey of Dana Point said, "California doesn't really have a plan. They're asking the contractors to go out there and design it for us. We know where we want to put it - you guys figure out how to make it pencil."

Opponents claim there are various problems with the project, which include projected costs that are billions of dollars higher than approved by voters and some ridership estimates which are well below the estimates in the original plans draft.
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