The project will extend the subway to 125th Street in Harlem, improving transport links to East Harlem, which is one of the city’s most public transit-dependent neighbourhoods.

The first contract for Second Avenue Subway Phase 2 incorporates lessons learned from Phase 1 and will involve critical utility relocation, laying the groundwork for advancing construction of three future stations and necessary system infrastructure. The contract will be a design-bid-build A+B contract, which incentivises companies to compete on both cost and time. In 2022, MTA Construction and Development saved more than US$100m on A+B contract awards compared to estimates.

Additional cost containment initiatives in Phase 2 include reuse of a tunnel segment built in the 1970s from 110 Street to 120 Street along Second Avenue, early real estate acquisition, adoption of best value contract structures like A+B contracts, reduction in back-of-house and ancillary space, and close co-ordination of contracts.

It is expected the contract will be awarded in the autumn and work will begin by the end of the year.

“As part of my administration’s efforts to advance transit equity across New York State, the Second Avenue Subway project will expand critical public transportation service to East Harlem, creating more opportunity for residents,” said Governor Kathy Hochul said. “We remain committed to keeping this long-envisioned project moving along swiftly for East Harlem, and I am proud to see it moving one step closer to reality.”

Revenue from congestion pricing will provide US$15bn in funding for critical projects in the MTA’s current capital programme, which includes Second Avenue Subway Phase 2. The MTA is finalising a funding agreement with the Federal Transit Administration for the project and has ensured that federally required contingency for the project is in place through a Capital Plan Amendment approved by the MTA Board last week, subject to approval by the MTA Capital Plan Review Board.

Phase 2 will extend the Q line by approximately 2.4km. There will be two new stations at 106 Street and 116 Street on Second Ave, and a direct passenger connection with the existing 125 Street subway station on the Lexington Avenue subway line. Phase 2 will also feature an entrance at Park Avenue to allow transfers to the Metro-North Railroad 125 Street Station.

Each station will have above-ground ancillary buildings to house ventilation, mechanical, and electrical equipment, as well as space for possible ground-floor retail and community uses. The expansion will serve an additional 100,000 passengers a day.

Phase 1 of the project extended the Q line from 63 Street to 96 Street and was New York City’s largest expansion of the subway system in 50 years. It opened for service in January 2017.