"The latest cost calculations indicate a 25% increase in the estimated cost of Phase 2 of Budapest's Metro 4 subway project. Construction of the section between Keleti train station and Bosnyák tér will cost as much as HUF 163 billion, according to a report disclosed by news station Inforádió.The three cost calculations that have been made for Phase 2 so far have yielded sharply increasing expenditures, with HUF 86 billion projected in 2005, HUF 131 billion in January 2007 and HUF 163 billion according to the most recent review.
To make matters worse, the estimate made a year ago included surface construction works worth HUF 35 billion as well, which is not included in the current, significantly higher calculation.
According to the report, the 24% cost hike is due to recent changes in construction regulations and delays in construction permits. The combined cost estimate of the two sections (Phase 1 between Kelenföldi and Keleti train stations, Phase 2 from Keleti to Bosnyák) is now as high as HUF 511 billion, HUF 25.4 billion higher than projected in January."
Source: Portfolio Online Financial Journal
19.12.2007