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May 16, 2025|High Performance

CHSRA to Release RFEI for Potential Public Private Partnerships

Written by Carolina Worrell, Senior Editor
(Rendering Courtesy of CHSRA)
The California High-Speed Rail Authority (CHSRA) is preparing to release a Request for Expression of Interest (RFEI) in the coming weeks to begin the process of formal industry consultation for potential public private partnerships to “drive creative solutions that deliver project segments faster and more efficiently while commercializing assets—such as trainsets, station facilities, track access, fiber, and real estate—at the earliest viable opportunity.” Additional opportunities include transit-oriented development, express cargo and parcels movement, and the leasing assets to the private sector.

In January, the CHSRA hosted an industry forum that brought together more than 400 experts from around the world to discuss strategies to build the system smarter and faster. This outreach, CHSRA says, “opened the door for meaningful private sector engagement, including interest from private equity firms exploring new financing opportunities.” It marked the first instance of such large-scale industry collaboration, and CHSRA says it has continued to build on that momentum—gathering ongoing insights on how to shape future partnerships with private industry through sustained engagement.

California Governor Gavin Newsom is proposing a guaranteed minimum of $1 billion per year of Cap-and-Trade proceeds through 2045. According to CHSRA, a guaranteed minimum funding level “will improve project planning and delivery and create options for project delivery, including potentially making the project more attractive to private capital.” This, CHSRA adds, will resolve the number one risk for completion of Merced to Bakersfield—funding uncertainty—and will address the funding gap previously identified by the Authority’s Office of the Inspector General. “This will help accelerate project delivery, lower long-term costs, and increase flexibility. It will also help mitigate escalation risk, which has been one of the largest drivers of increase project costs,” CHSRA said.

Since joining the Authority in the Fall of 2024, CEO Ian Choudri set “clear and urgent” goals for the program. This included:

  1. “Right-size the project and build in the correct sequence—finding cost savings in a measured, responsible manner while staying laser-focused on starting track installation, testing, and operations within the initial 119 miles, and expanding service from there.
  2. “Build faster, smarter, and more economically—by rethinking how we plan and execute construction.
  3. “Cut red tape and streamline operations—removing unnecessary processes and organizational redundancies that slow progress.
  4. Implement a new vision focused on connecting major population centers sooner—creating the conditions necessary to attract private investment into the program.
  5. “Stabilize state funding and financing mechanisms—working closely with the Legislature to enact the state’s funding commitment.”

“After 200 days in this role, I’m proud to report that all five of these initiatives are well into the implementation phase,” said Choudri. “Notably, our outreach to the private sector has been met with strong and growing interest. While each of these actions is advancing rapidly, a major priority is to bring private capital into the program by early next year. Now is the time for California to show leadership by seizing this ‘once in a project lifetime opportunity’ to unlock private capital and build the future of transportation in California.”

Since the start of construction in 2015, California’s high-speed rail project is delivering “real results,” the Authority noted. Highlights include:

  • Construction is active across 119 miles in the Central Valley.
  • Design and pre-construction activities are under way on the extensions to Merced and Bakersfield totaling 171 miles.
  • More than 50 major structures are completed.
  • In total, construction is under way or completed on 85 out of 93 structures (91%).
  • Construction is under way or completed on 96 of the initial 119 miles of guideway (81%).
  • 99% of the properties needed for the initial 119 miles are in hand.
  • 463 miles of the 494-mile San Francisco to Los Angeles/Anaheim system is fully environmentally cleared and construction ready.
  • 15,241 good-paying private sector construction jobs created, with 97.4% filled by Californians.
  • More than 1,600 workers are dispatched weekly on average to more than 25 active construction sites.
  • Of the $13 billion invested in the project, 97% went to California firms and workers.
  • More than 70% of the jobs created have been filled by residents of the Central Valley.
  • More than $1.84 billion paid to more than 900 certified small businesses working on the high-speed rail project statewide, including: $859 million paid to 296 Certified Disadvantaged Business Enterprises; $323 million received by 107 Certified Disabled Veteran Business Enterprises.
  • The project has generated $8.3 billion in direct labor income, and nearly $22 billion in total economic activity.
  • More than 250 pre-apprentices have completed Authority-funded construction program training.