Costs spiral by £116m on flagship Heads of the Valleys scheme

20/11/2019

The Welsh Government expects to be liable for £116.2m of additional costs for the A465 Heads of the Valleys dualling between Gilwern and Brynmawr, equating to 53% of the original £220m cost estimate.

This figure excludes potential costs the Government expects its contractor, Costain, to cover.

The two-year dispute between the parties is continuing, with the Government forecasting a £54.9m overspend.

Now the updated Wales Infrastructure Investment Plan (WIIP) reveals that ‘total scheme value’ and ‘Welsh Government support’ are both estimated at £336.2m. Scheme completion is expected next year.

A Government spokesman said £336.2m was the Government’s ‘current projection of our liabilities for the cost over-run’.

He added: ‘Welsh Government has not accepted liability for the entire cost increase and the discussions with Costain remain ongoing.’

Dowlais to Hirwaun progress

The WIIP confirms the Government’s intention to dual Dowlais to Hirwaun, the A465’s last section of three-lane single carriageway.

The interim outline business case in May 2017 estimated capital construction costs at £494.2m, excluding VAT, similar to the £500m estimate in the initial procurement notice last year. The updated WIIP estimates total scheme value at £440m, excluding VAT.

Asked to explain the lower cost estimate, the spokesman said: ‘The scheme scope remains as per the project that was taken through the public inquiry in 2018 on which the £440m was based. Previous figures indicate the scale of the project and are not intended to outline the actual project costs.’

The WIIP gives start and completion dates of 2019 and 2024 on one page, but 2020 and 2023 on the following page. Ministers will decide whether to commence construction when the procurement process is completed, said the spokesman.

The 10-mile dualling will be privately financed, and the Government will make annual service payments over the 30-year concession period.

The WIIP shows Welsh Government support being £440m, the same as the scheme value rather than the total annual payments.

Asked to explain this, the spokesman said: ‘The final cost covered by the Annual Service Payment will be based on the final construction cost, operating and lifecycle costs for the road along with financing costs.’

Also see

Latest Issue

latest magazine issue

ALSO INSIDE:

  • Exclusive: M25 delays data doesn't add up
  • Autonomous vehicles: Life after the hype
View the latest issue


Highways jobs

Highway Condition & Safety Inspection Officer - CMB982e

Grade 10, £33,945- £34,834 per annum
To undertake regular highways safety and condition inspections of the highways network Cumbria
Recruiter: Cumberland Council

Director of Open Spaces, Leisure & Culture

up to £133,569
Enfield is home to an increasingly diverse population we are investing in our places and people Enfield (London Borough), London (Greater)
Recruiter: Enfield London Borough Council

Director of Economy, Transport and Planning

Circa £140,000
Instantly recognised for our maritime heritage and the UK’s only Island city. Portsmouth, Hampshire
Recruiter: Portsmouth City Council

Bicester Garden Town Programme Manager

Grade M
Cherwell District Council
Recruiter: Cherwell District Council

Mechanical Engineer

£36,648 - £39,186 (pay award pending)
You will be required to maintain effective liaison with other professionals and key stakeholders Rotherham, South Yorkshire
Recruiter: Rotherham Metropolitan Borough Council

Driver - Northallerton - (IPT234)

£23,893 to £25,119 per annum pro rata
We also undertake registered Local Bus Services (transporting the public) and community transport journeys. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Fleet Compliance Assistant

£26,873-£29,269 per annum
We’re looking for a Senior Fleet Compliance Assistant to join our Fleet Management Team. Skipton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Officer (Traffic and Road Safety) OCC615318

£43,421 - £46,464 per annum
Please note we are actively looking at our ways of working using everything we have learnt and heard from our employees Kidlington, Oxfordshire
Recruiter: Oxfordshire County Council

Senior Officer (Traffic Control) OCC613685

£35,745 - £38,223 per annum
You will take a lead role in creating and implementing traffic signal and information strategies Kidlington, Oxfordshire
Recruiter: Oxfordshire County Council

Officer Traffic Control Centre OCC609561

£29,269 - £32,076 per annum
This role in our team supports the movement of traffic across Oxfordshire by responding to both planned and unplanned events. Kidlington, Oxfordshire
Recruiter: Oxfordshire County Council

Programme Control Officer

£35,745 - £36,648
The ideal candidate will have experience of project or programme management techniques and methodologies. Cumbria / Various
Recruiter: Cumberland Council

Senior NEC4 Contract Supervisor CMB1000e

£44,428 – £45,441
Are you an experienced NEC4 Supervisor? Cumbria
Recruiter: Cumberland Council

Major Projects NEC4 Senior SupervisorCMB999e

£53,775 – £55,963
Are you a knowledgeable or accredited NEC4 Supervisor? Cumbria
Recruiter: Cumberland Council

Driver/Loader (Waste Services)

Grade 6 Level 1 - 4 (£26,224 to £28,725 per annum)
Do you want a rewarding role, working outdoors, as part of a committed and hardworking team? York, North Yorkshire
Recruiter: City of York Council

Senior Highways Engineer (Highway Design)

£43,421- £46,464 per annum
The Highway Design and Regulation Team is integral to preserving the integrity and functionality of our highway infrastructure Princess Buildings, Halifax,
Recruiter: Calderdale Metropolitan Borough Council

Senior Capital Engineer

£43,421- £46,464 per annum
The Highway Capital Maintenance Team is integral to preserving the integrity and functionality of our highway infrastructure Princess Buildings, Halifax,
Recruiter: Calderdale Metropolitan Borough Council

Student Placement Engineer Transportation Infrastructure Service

£23,383 per annum (pay award pending)
You'll complete a series of placements, in different teams. Rotherham, South Yorkshire
Recruiter: Rotherham Metropolitan Borough Council

Workshop Shift Supervisor - Engine Shed Lane - (094739)

£35,745 - £40,221
North Yorkshire Council operates a fleet of about 960 vehicles across North Yorkshire. Skipton, North Yorkshire
Recruiter: North Yorkshire Council

Assistant Technician / Technician / Senior Technician

£25,119 - £33,024
Lincs Laboratory is UKAS accredited to BS EN ISO/IEC 17025 for construction materials sampling and testing Lincoln, Lincolnshire
Recruiter: Lincolnshire County Council

Operations Technician (Career Grade)

£22,737 - £30,296
Lincs Laboratory is a specialist in-house service of the Highways Services of Lincolnshire County Council. Lincoln, Lincolnshire
Recruiter: Lincolnshire County Council

Highways Presents

 


Latest Video