HS2 costs rise £1.2bn over budget
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Hs2 costs are being revised to accommodate a difficult time with Covid and slow starts to main civil’s works and pushing the budget to an estimated £1.2bn.
The largest part of the whole contract phase one works are budgeted to cost £40.3bn.
Andrew Stephenson who is HS2 minister has revealed further “cost pressures” in the latest six-monthly report on the project to Parliament.
The £400m of extra costs are looming because of “predominately due to slower than expected mobilisation of main works civils contractors, associated with delays to approvals of designs, planning consents, protestor action and some Covid-19 impacts.”
These are on top of previously identified extras of £400m for work at Euston station and £400m more to be spent on enabling works.
HS2 minister Stephenson said the extra money would come from a £5.6bn contingency fund set aside for HS2 phase one.
His report added: “Other pressures will arise as the programme progresses, some of which may crystallise into additional costs that will need to be covered from the contingency within the existing budget, and some of which will be mitigated or avoided.”
HS2 bosses are currently looking at ways of keeping a lid on Euston Station costs including building it in a single construction stage and potential design changes.
So far on phase one around £11bn has been spent to date, including land and property provisions. Approximately £12.6bn has additionally been contracted, with the remaining amount yet to be contracted.