The Metropolitan Transportation Authority has taken a major step forward on New York City’s long-awaited Second Avenue Subway expansion, awarding a $1.97 billion tunneling contract that marks the largest in the agency’s history.

The award was granted to Connect Plus Partners, a joint venture between Halmar International of Nanuet, New York, and FCC Construction of Madrid, Spain. The JV will lead excavation of the new tunnel stretching from 116th Street to 125th Street, including space for the future 125th Street Station.

“This is a transformative project for East Harlem that will improve mobility, equity, and access for an entire community,” Gov. Kathy Hochul’s office said in an Aug. 18 release.

The contract also covers the retrofit of a tunnel segment originally built in the 1970s. That section will now house the 116th Street Station, a decision officials say will save the MTA about $500 million in costs.

Tunnel boring will take place between 35 and 120 feet below Second Avenue using massive 750-ton machines with 22-foot diamond-studded drill heads. Early preparation is set to begin later this year, with heavy civil construction in 2026 and full-scale boring operations starting in 2027.

The expansion is projected to serve an additional 110,000 daily riders, cutting East Harlem commute times by up to 20 minutes. Once complete, the Q line will extend north to 125th Street, providing long-promised transit equity for one of the city’s most transit-dependent neighborhoods.

The tunneling package is the second of four major contracts under Phase 2 of the $6.99 billion Second Avenue Subway project. Phase 2 is being financed in part through New York’s congestion pricing program, which is expected to provide a critical revenue stream for large infrastructure investments.

Earlier this year, the MTA awarded the first Phase 2 contract, a $186.6 million deal with an AECOM-HNTB joint venture. That package focused on relocating utilities and overseeing initial site work.

Two additional contracts remain in the pipeline:

• 106th Street Station buildout
• System fit-out work for three new stations

Completion of the East Harlem extension is currently expected in September 2032.

For residents, the milestone represents long-awaited progress on a project that has been discussed for decades. Originally conceived in the 1920s, the Second Avenue Subway was stalled for generations due to funding challenges, with the first phase—extending the Q line to 96th Street—finally opening in 2017.

“This is not just another contract award,” an MTA spokesperson said. “It is the beginning of the work that will finally bring modern subway service to East Harlem.”

Originally reported by Sebastian Obando in Construction Dive.