There is little doubt that the vast costs associated with constructing large scale tunnelling projects, particularly under an urban environment, can prove too much for the generally pennywise client. Throw into the pot the confusion around methods of procurement, contract forms, financing arrangements, not to mention political sensitivity of expensive long-term construction schemes, all but the most dedicated client could easily fall by the wayside. There’s a great example here in London called Crossrail. The much talked about scheme, to link west and east London with twin bored tunnels (in its simplest form), has been on and off for over 10 years now. But recently the scheme has gathered some serious momentum and things are looking hopeful.
Basically there are two east-west connection schemes in the running, Crossrail and London Regional Metro (LRM). Crossrail is an older proposal that would see a US$16bn-US$25bn connection (in its fullest form, though this can be stripped down) between Heathrow in the west and Stratford and the Isle of Dogs in the east. Funding is mostly planned via the private sector including US$3.5bn coming from increased business rates along the line. Public funding is also expected to be in the region of US$3.5bn. LRM is the cheaper option, coming in at around US$6.5bn-US$8.5bn and just includes the core tunnels between Paddington in the west and Liverpool St in the east. This is an entirely privately funded, built and owned proposal. UK prime minister Tony Blair seems approving and a government commissioned business plan by Crossrail had just landed on his desk as T&TI went to press. The plan apparently shows how Crossrail is not only affordable, but can in fact, boost Treasury coffers by between US$10bn-US$15bn in extra taxes and regional growth.
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The fact is, whatever the proposal or cost, London is screaming out for this new transport link as the city’s existing system creaks under the weight of the capital’s ever expanding population. London provides US$33bn a year to the national economy and this is certain to grow with the near half million new jobs projected by 2016 in the area Crossrail would service!
With this in mind there’s a very strong argument that Crossrail is in fact a national scheme and that the government should stump up a lion’s share of the funding anyway. The government here in the UK must look at these proposals long and hard. The question is not “can the country can afford to build it”, but “can the country afford not to?”
Tris Thomas
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