Key road widening scheme is set to cost millions more than expected
ONGOING work to turn a section of a major Valleys road into a dual carriageway is running more than £50m over budget, it has been revealed.
The Welsh Government said it is “in dispute” with builder Costain over the 23% overspend expected on the current phase of the A465 Heads of the Valleys road dualling project.
Work to broaden the 8km section between Gilwern, Monmouthshire, and Brynmawr in Blaenau Gwent had been budgeted at £220m and was expected to finish next year – but is now not due to finish until autumn 2019 and will cost more than £270m.
The revelation comes after it emerged that the final phase of the project, which will complete the three-decade-long scheme by
linking Hirwaun and Dowlais, may ultimately cost triple its £428m estimate if the Welsh Government brings in a private sector investor to fund the work.
The news about the Gilwern to Brynmawr section is another blow to the Welsh Government and highlights the spiralling costs that are associated with such a huge project.
Speaking on Monday morning, Ken Skates AM, cabinet secretary for economy and transport, admitted that the latest setback to hit the A465 project is “concerning” for people who live and work in the Valleys.
“I am very disappointed by this but my officials are actively managing this overspend to identify ways of mitigating the project position,” said Mr Skates.
“As part of this work, Welsh Government is currently in dispute with Costain on a number of matters around the allocation of risk in the contract to ensure they are only paid what they are contractually entitled to.
“I understand that this news will be concerning for those living and working in the area and I am very grateful for their continued patience and understanding while we deliver the scheme. Public Exhibitions are commencing today at the site offices in Gilwern. Project team members will be available to provide stakeholders with an update on the scheme, to give an opportunity to raise concerns and offer an opportunity to take a trip around the site and see the work done to date.
“While significant, these shorter term impacts need to be balanced against the long term benefits of this very important scheme once completed. The scheme has very impressive features, in particular some of the bridges being built and the environmental measures being put in place. It will look spectacular when finished and I am confident that it will bring real improvements to the area in terms of traffic flow, safety and accessibility.”
The Welsh Conservatives have reacted angrily to the development, calling the potential 23% overspend a “calamity”.
They warn that other transport projects in Wales could now be delayed in order to fund the extra cash needed to complete section 2 of the A465 improvement.
“These delays could cost in the region of £50m, and the Cabinet Secretary needs to clarify where the money is coming from,” said Andrew RT Davies, Leader of the Welsh Conservatives.
“Labour’s mismanagement of this scheme is having a devastating effect on businesses in the region already. If the money is to be drawn from the department’s existing resources, which transport projects will have to give way in order to pay for this calamity?
“We have been raising concerns over this scheme for many months, and it’s deeply disappointing to see the project slipping so far beyond schedule.
“The Welsh Government simply woke up too late.”
Mr Davies has also urged the Welsh Government to clarify when exactly the scheme will be finished, following an extension to the initial deadline.