Cost of Wolverhampton Interchange project rises by £15m
The cost of the £132 million City Interchange project has risen by a further £15 million due to ‘unforeseen costs’, it has emerged.
The major regeneration scheme to combine rail, tram and bus services in Wolverhampton has been affected by design changes and other technical issues, say city bosses.
It is hoped to secure just over half the money from the West Midlands Combined Authority, leaving Wolverhampton council with the remaining £6.9 million to find.
Council chiefs are aiming to raise as much as possible through capital grants.
The authority has until 2020-21 to find the cash.
A report to the council said the extra costs were associated with the building of the station and the demands of Network Rail.
Tim Johnson, strategic director of Place, responsible for the city environment and transport, said part of the reason was required alterations to the design of the scheme. “It is an extremely complex project and as it evolves, changes in the design have become necessary.
“The extra funding will enable us to maintain pressure on the project,” he said.
Inflation surrounding the building the station is another factor in the rising cost of the Interchange scheme, with the price of construction materials increasing sharply.
The council is hopeful of getting ‘at least’ £8m from the HS2 Connectivity Fund and is already in negotiation with the Combined Authority over the grant.
Now bosses are focusing on attracting additional capital grants from other sources, such as the Department of Transport. “It is important to keep the project on programme,” said Mr Johnson. Other unexpected costs relate to site investigation, design works,
Wolverhampton’s decision-making cabinet said it was ‘prudent’ to build in the additional budget funded by borrowing but at the same time explore opportunities to obtain grants with a view to keep borrowing to a minimum.
The interchange project will eventually link the bus station, railway station and the Midland Metro.
A new £22m bus station now stands on the site of the old depot in Pipers Row, while the current railway station is due to be demolished to make way for a new one.
Its replacement is expected to be completed in early 2019 and will benefit from an enhanced Birmingham New Street-style ticket office, a bigger passenger concourse, ticket barriers, improved shopping and café facilities, increased taxi rank provision and a more efficient passenger drop off/pick up arrangement.
Changes have already been made to the access to the station and a new car park built.
As well as upgraded bus, rail and tram facilities, the project includes new office and leisure facilities on the city side of the ring road with a new canal quarter featuring hotel, restaurant and shopping development on the other side.
