New Metro lines set to cost £93m more than hoped Warning over forecast budget overrun
THE creation of two new Midland Metro routes is already forecast to be tens of millions of pounds over budget, councillors have been warned.
Speaking to the West Midlands Combined Authority (WMCA) investment board, finance director Sean Pearce said both the Brierley Hill Metro extension and the planned route between Birmingham and Solihull are currently exhibiting ‘cost pressures’.
The proposed line from Birmingham to Solihull has a total budget of £675 million, but is currently forecast to reach £735 million, while the Brierley Hill extension’s budget is £310 million, with a forecast of £343 million.
Combined, the to £93 million.
But Mr Pearce said work was already under way to bring them back into budget.
“There continues to be flagged spending pressures in some of the Metro schemes that have previously been reported to this board,” he said.
“So there’s two schemes at the moment that are demonstrating some cost pressure.
“One is the Metro from Birmingham to Solihull.
“It’s a scheme that’s in a much earlier stage of development, but that shows £60 million worth of pressure at the moment, in terms of its budg- difference comes et. The second is the Brierley Hill Metro extension, which is showing £33 million.
“Those two are being worked on to bring them back into budget and on schedule. And when those have been resolved they’ll be brought back to this board.”
Councillor Mike Bird, leader of Walsall Council and recently appointed portfolio holder for housing, spoke of the need for more clarity around the ‘cost pressures’ associated with combined authority projects. And he asked that the board be presented with more detail regarding such issues in the future.
“I think we’ve got to keep our eyes on these budgets to see exactly where they are,” he said.
“What would be helpful, Mr Chairman, would be that when we get notification of such pressures, we could be told what percentage that is of the overall contract.
“Then we can see how wrong we’re getting it. Or right, as the case may be.”