£31 million has been spent so far on the plans for phase two of Nottingham Express Transit. The money has covered the design work, public inquiries, land purchases and appraisal work – all of which was needed before the government would give conditional approval.
Steve Calvert, service director for planning, sustainability and regeneration, said: “If there was an administration that decided it wasn't going to do any work on it for four years, that's a significant impact and a lot more work would have to be done. But I wouldn't go as far as to say it would be down the drain because the project has moved forward. But if there is a significant delay it adds to the costs."
A report giving these details was presented to Nottinghamshire County Council’s cabinet and also gave details of the outline business case. It reveals that other the life of the contact the County Council’s contribution in real terms will increase to £53 million from £48 million.
Reasons for the cost increases include the extension of the contract by three years (now to 2033 to give best value for money), increased fees for arranging borrowing, reduced interest rates, revised development costs and compulsory land purchases.
Despite these increases it is still expected that the extensions will come within the cost estimate.
Cabinet members have approved the start of the procurement process to award a new joint contract for Line One and Phase Two, proving conditional approval is given by the government. It is hoped this will start in July 2009 with the preferred bidder chosen in December 2010 and contract awarded in August 2011.
Source: This is Nottingham