By ashleykaren
Covid-19 measures and rising inflation have raised the cost of Silvertown Tunnel £12m above budget.
An investment program report says satisfactory advancement has been made on boring and tunnelling, but costs have increased.
Inflationary pressures in 2022/23 were higher than expected, specifically about land purchases and “resources”, and have added roughly £4m to EFC (the estimated final cost). The agreed Safe Stop during the first Covid-19 lockdown has also influenced the costs.
In addition, the report presented identifies further potential financial risks.
It argues: “Significant risks around land compensation and ground conditions remain and if these were to materialize, it may have a significant impact on the EFC.”
Continuous materials and skilled labor shortages have also driven the end date back by 20 days. The tunnelling began at the end of August.
Last month, the Riverlinx consortium informed the 82m-long tunnel boring machine had arrived at the River Thames, having excavated over 210m and installed 102 rings. It began its first trip on the north side of the river in Newham. Once it arrives at North Greenwich, it will be turned around in the rotation chamber to finish the second drive for the 1.4km twin-bore tunnel.
The Riverlinx Construction Joint Venture (CJV) is a partnership between Bam Nuttall, Ferrovial Construction and SK Ecoplant. It is completing the Silvertown Tunnel design and construction works.
The Riverlinx Consortium includes Abrdn, Invesis, Cintra, Macquarie Capital and SK Ecoplant, and is providing the project via the design, build, finance, operation and maintain the contract.
