HS2 Project Faces Further Delays Beyond 2033 Due to Mismanagement Issues

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Heidi Alexander says billions wasted in ‘litany of failure’, amid speculation cost will now exceed £100bn

The high-speed rail network HS2 is facing delays beyond the 2033 target for completion as the government acknowledges mismanagement by the previous administration. Transport Secretary Heidi Alexander revealed that the project cannot be delivered on time and within budget, with costs likely to exceed £100bn.

Alexander received a grim assessment from HS2 Ltd's new chief executive, Mark Wild, who highlighted the unsustainable situation regarding cost, schedule, and scope. Wild suggested that the government needs to take strict measures against contractors and renegotiate engineering contracts to prevent further cost escalations.

He also pointed out that the testing phase alone is expected to take significantly longer than initially anticipated, with a projected duration of three years instead of 14 months.

Alexander emphasized that it would take several months to determine a revised schedule and cost estimate for the project. The official cost estimate, previously set at up to £57bn at 2019 prices, is now speculated to surpass £100bn.

Wild's letter outlined the need for a 'reset' in construction, suggesting that the main works civils contracts awarded in 2020 need to be stabilized to avoid further financial risks. He warned that without intervention, costs would continue to rise.

To minimize delays, Wild proposed running trains at reduced speeds initially and delaying the installation of automatic train operation until necessary. Alexander stressed the importance of building the line safely and affordably, even if it means a longer timeline.

The government's commissioned review identified several missteps in the management of the HS2 project, including signing contracts prematurely and frequent changes in plans, resulting in wasted taxpayer money and an 'appalling mess' that needs to be rectified.

James Stewart's review highlighted the significant cost overruns on the main works civils contracts as the primary contributors to the escalating costs. Political decision-making and lack of ministerial oversight were also cited as factors leading to delays and increased expenses.

Alexander announced plans for a new leadership approach to steer the project back on course, appointing Mike Brown as the new chair of HS2 Ltd. Brown, along with Wild, had previously worked with Alexander on successful transport projects in London.

Despite the challenges ahead, Alexander remains optimistic about overcoming the obstacles and delivering the HS2 project successfully. However, the anticipated delays suggest that the project's completion will be pushed back by at least two years.



Source: The Guardian
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