HS2 Phase 1 (West Midlands to London) remains within its overall budget of £44.6 billion, including a contingency reserve, but concerns continue at the steady increase in cost.
New Secretary of State for Transport Mark Harper told the House of Commons on October 27 that if not mitigated, the final cost is “likely to exceed” its £40.3bn target (not including the government-held contingency). As a result, in September, the Department for Transport commissioned HS2 Ltd to develop and implement actions to bring costs back in line.
“Consistent with the rest of the economy, HS2 is experiencing high levels of inflation, and is working with its suppliers actively to mitigate inflationary increases,” said Harper.
Better news is that £800 million worth of savings have been identified in Phase 1 - in main works, civils, and purchase/resale of land and property. This brings the net extra costs to £1.9bn - although these are still up by £200m since March.
To read the full story, see RAIL 970
You can subscribe for print/digital access via https://bit.ly/3DcPaAv
Comment as guest
No comments have been made yet.