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.

Railroads, Channel Tunnel, London & Continental Railways

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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.

United Kingdom, Contracts, Government property

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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.

Economic policy, Labour Party (United Kingdom), Prison administration

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