Metro city line over budget

Contractors charge extra for working under old town The expansion of the city’s Metro system will cost 3 billion kroner more than originally budgeted, bringing the total cost up to 21.3 billion. The new estimate to build the Cityringen circle...

The expansion of the city’s Metro system will cost 3 billion kroner more than originally budgeted, bringing the total cost up to 21.3 billion.

The new estimate to build the Cityringen circle line comes after contractors revised the costs associated with carrying out large-scale construction work under a historic city.

“We have underestimated how much extra costs contractors associate with the risk of working in a city like Copenhagen,” said Henrik Ploughmann Olsen, CEO of the Copenhagen Metro.

He added that bidders for construction work have generally become less willing to take risks due to the financial crisis.

“When you do construction work in an old town, you rely on continuous authorisation from the authorities,” he said.

This, according to Olsen, greatly increases the risk of costly delays. The risk of damaging buildings also plays a role in the new budget increase.

During the tendering process, interest rates are said to have fallen to such a degree that the new budget increase is balanced out compared with initial estimates.

Factfile | The city circle line
-    The 15.5 km circle line and its 17 new stations are expected to be ready by 2018.
-    The addition of the city circle line is expected to increase annual metro passenger numbers from     today’s 52 million to around 130 million.
-    The Copenhagen Metro is owned by the Copenhagen City Council, the Transport Ministry and     Frederiksberg Council.

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The Copenhagen Post

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