Docklands' pounds 450m road tunnel 'should not have been built'
Friday 16 June 1995
The most expensive road in Britain, a 1.1-mile dual tunnel in east London's Docklands, cost nearly pounds 450m of public money to build, and was constructed despite appearing to have no economic benefit, a National Audit Office report published yesterday reveals.
The Limehouse Link, a tunnel under Limehouse basin opened by the Prime Minister in May 1993, was built by the London Docklands Development Corporation as part of the regeneration of the area. The construction costs were originally put at pounds 141.5m in 1988. However, the price steadily rose, and by the time tenders were accepted, the LDDC estimated the cost would be pounds 227.6m.
Because of difficult ground conditions, onerous noise restrictions and problems with design, costs rose again to pounds 293.3m. Some problems were a result of "deficiencies in the tender process" and poor management. The contractors were paid pounds 9m just for finishing on time.
In addition to construction, the NAO estimates there were further costs of pounds 155.3m for acquiring the land and rehousing local residents. The final cost of pounds 448.6m is about two-thirds of what BR invests annually.
If the project had been assessed under the normal cost benefit analysis used by the Department of Transport, it would never have been built. When its feasibility was first examined, the cost was estimated to be pounds 91m but even at that price it failed to show positive economic benefit. However, the LDDC pressed ahead because of the supposed regenerative effect of the road.
According to the NAO, the LDDC was under pressure from Olympia and York, developers of Canary Wharf, to build the link as the firm had made clear "their view that a delay in constructing would be unacceptable".
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Israel's propaganda machine is finally starting to misfire
- 4 Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
- 5 'Hello mum, this is going to be hard for you to read ...'
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
£100 - £120 per day: Randstad Education Chelmsford: Would you like to be part ...
£100 - £120 per day: Randstad Education Chelmsford: a small rural school, is ...
£100 - £120 per day: Randstad Education Chelmsford: They want their school to ...
£100 - £120 per day: Randstad Education Chelmsford: Would you like to work in ...