Tuesday 28 November 2017

Chancellor's £300 million a year for Wales pays for 5 miles of road.

As I wrote earlier it's only after further reading that Chancellor Phillip Hammond has said the Welsh Government will get an extra £1.2bn over four years as a result of his Budget. 
 
 
The money will come to Wales because of extra spending on projects in England - under the so-called Barnett formula.

To put this in context  the  fourth section of the A465 Heads of the Valleys road in south east Wales be turned into a dual carriageway. has resulted in a review has been ordered into what is Wales largest current road building scheme, amid concerns it is running over budget and is behind schedule.

Economy Secretary Ken Skates wants a "comprehensive" look at the £220m project to dual the eastern section of the A465 Heads of the Valleys road.


Work on the 5 mile (8km) stretch between Gilwern, Abergavenny, and Brynmawr is expected to start at the end of the year.
It will involve widening the existing road which passes through Clydach Gorge alongside the River Clydach.


Yes that's right  5 some say 4 miles costs £220m the equivalent of one year of the extra funding  the Chancellors so graciously granted us  in the budget to equal extra spending on projects in England.

Now clearly this was as a a Welsh Government a  challenging project.

So much that it is almost £51m over budget, the Welsh Government has said.
Ministers are in dispute with the contractor upgrading the road, Costain, in an effort to pay the firm only what it is contractually entitled to.
Completion of the section is now delayed until the autumn of 2019.
Costain said it continues to work "closely with the Welsh Government to deliver this complex project".

The announcement by Economy Secretary Ken Skates follows a review of the project, originally budgeted at £220m.

According to Mr Skates Costain has found the project - which involves widening the Heads of the Valleys Road through the Clydach Gorge 

- "far more difficult to deliver than they originally envisaged" due to the "topography" and "complex ground conditions".
 "The scheme is currently projected to be delivered 23% over the approved budget.
"I am very disappointed by this but my officials are actively managing this overspend to identify ways of mitigating the project position.
"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."
 With the Newport Relief Road budgeted at £1 billion even if was to come in on budget (and does that count compensation payments) we can see that the Chancellors £1.2bn over four years makes it  very unlikely there will be no other major infrastracture  projects for at least five years .

How much longer can we keep begging for crumbs off the Westminster Table of spending on major infrastructure projects in England?



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