SACRAMENTO (AP) — It will cost less than expected to build the second leg of California’s $68 billion high-speed rail system, which will run from Fresno to north of Bakersfield.

The California High-Speed Rail Authority said Thursday that the low bid for the 65-mile segment was $1.2 billion.

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That’s below the projected cost of between $1.5 billion and $2 billion.

The winning bid was by a team made up of three companies: Dragados USA Inc., Flatiron West Inc., and Shimmick Construction Company Inc.

It beat two other bidders, including Tutor Perini/Zachry/Parsons, which is building the first 28-mile leg from Madera to Fresno.

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The new segment includes about 36 grade separations in Fresno, Tulare and Kings counties, including underpasses and overpasses.

It runs from Fresno to one mile north of the Kern-Tulare County line.

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