The HS2 project has allocated an extra £150M to the Skanska Costain Strabag joint venture for tunnelling in London.
- The allocation increases Skanska’s share by £50M, raising its total HS2 contract to £1.425bn.
- This funding is related to agreed changes in project scope and inflation adjustments, according to HS2 Ltd.
- The SCS joint venture is tasked with constructing over 20km of twin-bore tunnels across various sections in London.
- Current developments include ongoing discussions about the Euston Tunnel construction, pending governmental approval.
The High Speed 2 (HS2) project has recently decided to allocate an additional £150 million to the Skanska Costain Strabag (SCS) joint venture, specifically for the design and construction of tunnels in London. This new funding increases Skanska’s share by £50 million, ultimately bringing its total HS2 contract value up to £1.425 billion. The enhanced funding reflects “planned and agreed changes to the scope of the works under the contract,” signalling a broader expansion and modification of the project.
According to HS2 Ltd, this funding adjustment is predicated on several elements, such as adjustments for inflation and further compensation events. These costs are drawn from HS2’s contingency fund, suggesting strategic financial planning to accommodate these additional expenses. This announcement follows previous funding increases, including a £305 million boost last summer and a further £209 million in December. As a result, the total contract value for the SCS joint venture on HS2 now stands at an impressive £4.19 billion.
The SCS joint venture is responsible for delivering more than 20km of twin-bore tunnels for the HS2 project, stretching from central London to the west of the city. Key elements of this work include several significant tunnel projects, such as the 8km Northolt Tunnel West from West Ruislip to Greenford, and the 5.5km Northolt Tunnel East from Greenford to Old Oak Common. Additionally, the recent completion of the Atlas Road Logistics Tunnel marks a milestone, with the Tunnel Boring Machine (TBM) having finished its drive earlier this year.
A crucial component of this project is the construction of the Euston Tunnel, a 7.2km route extending from Old Oak Common to the planned terminus at Euston Station. However, this particular tunnel construction is currently on hold as HS2 Ltd engages in discussions with the government to gain approval. Notably, two TBMs are ready to be buried in the Old Oak Common basement in preparation for work to commence on the Euston tunnel once governmental consent is granted.
The expanded financial commitment underscores the strategic priority of advancing the HS2 project, despite ongoing challenges.
