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Turmoil could stall £5bn scheme to widen the M25
Dick Murray, Transport Editor20 Oct 2008
BRITAIN'S most expensive road upgrade a £5 billion widening of the M25 is under threat in the wake of the economic downturn.
Fears were raised today that the reluctance of banks to lend money could delay the project, which is due to start in April and be completed by 2012.
It comes as major Tube upgrade works are also under threat as a result of the financial turmoil, the Standard has learned.
The M25 scheme is just one of a number of the Government's £44 billion private finance initiatives which are facing possible delays because of the difficulty in finding backers.
The project, Britain's biggest-roads PFI deal, would add a fourth lane to 63 miles of the M25 in Kent, Surrey, Hertfordshire and Essex.
Today a Highways Agency spokesman denied the credit crunch would have any impact. He said: "We are on target to bring this to a satisfactory conclusion. Following the successful completion of the funding competition, the Highways Agency expects to award the M25 contract in early 2009."
Meanwhile, maintenance firm Tube Lines is facing a cash crisis which could delay or cancel parts of its modernisation of the Jubilee, Northern and Piccadilly lines.
Reader views (2)
Phil - the UK has a pretty sparse network of roads compared to the rest of Europe(in terms of both motorway per head of population as well as land area - especially in the South East), so I'm not sure that your synopsis is totally correct. If you don't believe me go to France or Germany. We need more spending on roads not less in order to catch up with Europe (even Ireland now) and allow the motorist to get some benefit from the £46 billion annual contribution it makes.
- Mark, london, 28/02/2009 16:22
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This money would be far better spent on improving the railways, rather than on increasing the amount of carbon emissions. The misguided transport policy in the U.K. over the past fifty years has always favoured the roads and airports over the railways.
- Phil Jones, London, UK., 21/10/2008 10:06
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