Citytunneln will come in € 96 million under budget

01 December 2009

Citytunneln’s project manager, Örjan Larsson.

Citytunneln’s project manager, Örjan Larsson.

Constructing Sweden's Citytunneln project will now cost SEK 8,57 billion (€ 822 million) instead of the previously budgeted SEK 9,45 billion (€ 906 million), according to project organisers.

The new calculation means the project will cost almost SEK 1 billion (€ 96 million) less than originally thought.

In a statement from Citytunneln it said the saving is the result of thorough planning at the beginning of the project and during the procurement of the major contracts.

It added with one year left before the opening of the new 17 km railway track which connects Malmö central station, (Malmö C) with the Öresund Bridge and joins the railway networks in Skåne together, costs from all the major contractors can now be summarised and the cost of the remaining work can be estimated more accurately.

Citytunneln's project manager, Örjan Larsson said, "We took plenty of time and we were very thorough with the tender documentation. We also managed to create a good climate of cooperation between ourselves and the contractors who won the procurements.

"The focus has always been on solutions and we have solved most of the problems together, which has prevented increased costs".

Risk management is another reason for the cost reduction the statement said.

"All imaginable risks have been identified and minimised early on in the project. By being aware of problems that might occur, we have avoided costly consequences, both technically and through loss of time. This has also contributed to the high quality of the building work in Citytunneln," Mr Larsson added.

The total sum for all contracts will be SEK 6,26 billion (€ 600 million) - SEK 553 million (€ 53 million) less than budget. The building proprietor costs for Citytunneln will also be lower totalling SEK 2,3 billion (€ 221 million) instead of SEK 2,64 (€ 253 million). These include costs for the larger technical investigations, project planning and the extensive environmental investigation, as well as the administrative costs for forming the organisation in 1998.

Banverket, Sweden's rail authority, responsible for funding part of the scheme will make the biggest saving, according to Citytunneln. Other project financers, Region Skåne and Malmö City, will also save money based on the new final cost calculation.

The Citytunneln scheme will also increase the capacity for future rail-bound traffic with a 6 km tunnel constructed under central Malmö and the addition of 11 km of surface railway.

The extension of Malmö C includes another underground station and new stations have also been built at Triangeln and in Hyllie.

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