Bergen light rail to breach previous budget estimate by several billion kroner: “General price growth explains over 30% of the increase”

Bybanen - light rail tram - BergenPhoto: Marianne Løvland / NTB
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According to the latest cost estimates, the light rail project in Bergen will cost at least NOK 17 billion. That is up to NOK 5 billion more expensive compared to the previous estimate.

The new estimates are not completely comparable with the previous ones, as they do not include the prices for land acquisition.

“The new estimate tells us that the cost increase is NOK 4.3 billion, from 2019 to 2021. In addition, there is a cost increase on land acquisitions, the size of which we do not currently know. 

“General price growth explains over 30% of the growth. The uncertain market situation, together with an uncertain world situation, are also major contributors to growth.

“In addition, new elements, which were not included in the previous estimate, as well as increased unit costs and lengths of tunnels and ramps, contributed to increased estimates,” project manager Rune Herdlevær told Norway Today via e-mail.

New estimate expected in the spring

Herdlevær added that a new estimate would be made in the spring of 2023. That estimate will also form the basis for the financing plan for the project.

“The estimates are as certain as they can be at this planning level. Until the autumn, when the zoning plan is due for consultation, the estimate will be supplied with, e.g., new land acquisition costs.

“Next spring, a new estimate will be made, which will form the basis for the financing plan for the project,” Herdlevær concluded.

Note: The picture used is for illustration purposes only.

Robin-Ivan Capar is a contributor and editor at Norway Today.

Source: #Norway Today / #NorwayTodayNews

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