Docklands' pounds 450m road tunnel 'should not have been built'

CHRISTIAN WOLMAR

Transport Correspondent

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".

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
2015 General Election
May2015

Poll of Polls

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Product Owner - Business Analyst

Negotiable: Recruitment Genius: A Product Owner/Business Analyst is required t...

Recruitment Genius: Quality Technician

£28800 per annum: Recruitment Genius: This company is going through a period o...

Recruitment Genius: Administrative Assistant / Order Fulfilment

£14000 per annum: Recruitment Genius: An exciting opportunity to join a thrivi...

Recruitment Genius: Java Developer

£26000 - £33000 per annum: Recruitment Genius: An exciting opportunity for an ...

Day In a Page

Woman who was sent to three Nazi death camps describes how she escaped the gas chamber

Auschwitz liberation 70th anniversary

Woman sent to three Nazi death camps describes surviving gas chamber
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea