The costs of public projects were under the spotlight this week, with questions raised over the budgets for schemes such as Crossrail, the Channel Tunnel Rail Link and the Stonehenge road tunnel.

The cost of the Crossrail project is understood to have gone up 60%. It was priced at £10bn in 2002 and is now thought likely to cost closer to £16bn.

A National Audit Office report published last week also said that the Channel Tunnel Rail Link scheme would go over budget. Although the construction of section one of the link met its cost target and deadline for completion, London & Continental Railways will have to borrow £260m from the Department for Transport for the second section of the project.

The NAO blamed the problem on low revenues from section one of the link and called for better forecasting of revenues and guidance on forecasting approaches from the Department for Transport.

The troubled plan to redirect the A303 under Stonehenge is also facing cost issues. Roads minister Stephen Ladyman has announced a review of the scheme after its estimated cost leapt from £284m in 2003 to £470m in 2005.

The change in cost is due to large quantities of soft chalk, weak chalk and a high water table, which has created the possibility of groundwater rising to the surface after heavy rain, according to the Highways Agency, one of the partners in the project.

Source

QS News