Rail link bid risk ignored
Article Abstract:
London & Continental Railways (LCR) won the bid to build the Channel Tunnel Rail Link at a cost of 5.4 billion pounds sterling, despite government officials knowing it was not as financially secure as rival bidders, according to a draft National Audit Office report. Problems have arisen with the funding of the project and LCR have asked for 1 billion pounds sterling of extra funding, which the government have refused. The report highlights initial fears that the project would fail, but was still chosen because it required 600 million pounds sterling less funding by the public.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Audit Office to slam spiralling public initiative finance fees
Article Abstract:
UK government procurement contracts should have fees limited and strict timetables established, according to the National Audit Office (NAO). A report has been produced by the NOA criticising a private finance initiative project which cost an extra 150 million pounds sterling because of legal and construction costs incurred when the project over ran by almost nine months. The building work was being carried out on behalf of the Department of Social Security in Tyneside, which has been criticised for failing to obtain appropriate funding before the project began.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Labour faces PFI dilemma
Article Abstract:
United Kingdom private finance initiatives (PFI) have been particularly cost effective in prisons management despite Labour party intentions to stop future schemes. The National Audit Office has found current prison schemes in Liverpool, England, and Bridgend, North Wales, to be based on good working relationships and efficient management systems. The Labour party currently proposes to build future prisons without PFI.
Publication Name: Building
Subject: Construction and materials industries
ISSN: 0007-3318
Year: 1997
User Contributions:
Comment about this article or add new information about this topic: