£10m. cost increase at airport in two years
Tuesday 26th July 2011, 2:30PM BST.
GUERNSEY AIRPORT has clocked up more than £10m. in new costs since the development project started in 2009, it has emerged.
The costs are detailed in an appendix to Public Services’ report on the project in this month’s Billet d’Etat – but has been signed off as value for money by Treasury.
It provides a comparison between the development’s budget in 2009 and May’s final estimate.
The costs include a ‘pre-award contingency risk’ of £4.7m., an increase in professional fees from £1.8m. to £5.2m., a £400,000 increase in nose-in, push-back parking for aeroplanes and £3m. allocated for soil treatment provision.
Although negotiations with PSD’s preferred tenderer, Lagan Construction, identified savings of more than £2m. it is unclear why some costs have gone up by so much.
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Does anyone think there is a cat in hell’s chance of this project coming in within budget?
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Glad Treasury have confidence!
So that means no tax changes, no increased airport charges, no VAT introduced etc to cover full cost?
I have a vision (just read my teacup!) Many States members voted out next election, quite a few newbies voted in.
Oh! next big project will be to sell airport fast to plug the sinkhole already forming
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Why start a new trend, other projects have gone over…
Still this is not as surprising as what the land will look like afterwards or the size of the proposed new lighting gantry.
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Ray – my money’s on the cat!
Soph (the soothsayer) – I think your tea leaves may be correct. I would suggest the full commercialisation (proposal) and sale of the airport will happen with the next two years.
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I wonder how much a tunnel to Jersey airport would cost ?.
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