The disestablishment of the Ministry of Transport’s work on the Auckland Light Rail project will likely cost millions of dollars spent over six months and
Terrible both in scraping the project and how nothing has been done for a quarter billion
Most of it will be design costs and early land purchases. Design is about 10-20% of construction costs which on a multi-billion dollar project adds up pretty quickly.
Yeah, its not like it was 250m of cash spend that’s now gone. At least some of that would have been asset purchases, mostly land / buildings, and going through Auckland that would have cost a bunch.
Of course much easier to oppose it on the grounds of its all money completely lost, rather than assets that could be sold to recoup a bunch of that money.
I was thinking the land must be super expensive. But then if they have only spend $250M, maybe they haven’t bought that much? But I wonder what the new government assets look like compared to that invoice.
They bought the kiwi bacon building on new north road which on its own was $33m. Not sure what other parcels they purchased but none of the corridor is what I would call cheap.
The government has good reason to talk up the price of the project to date, but if they sell the land bought then there’s a good chance of recouping a lot of that $250 million. Depending on the timing of buying the land, they might get more than $250 million for selling it 😆
Most of it will be design costs and early land purchases. Design is about 10-20% of construction costs which on a multi-billion dollar project adds up pretty quickly.
Yeah, its not like it was 250m of cash spend that’s now gone. At least some of that would have been asset purchases, mostly land / buildings, and going through Auckland that would have cost a bunch.
Of course much easier to oppose it on the grounds of its all money completely lost, rather than assets that could be sold to recoup a bunch of that money.
I was thinking the land must be super expensive. But then if they have only spend $250M, maybe they haven’t bought that much? But I wonder what the new government assets look like compared to that invoice.
They bought the kiwi bacon building on new north road which on its own was $33m. Not sure what other parcels they purchased but none of the corridor is what I would call cheap.
The government has good reason to talk up the price of the project to date, but if they sell the land bought then there’s a good chance of recouping a lot of that $250 million. Depending on the timing of buying the land, they might get more than $250 million for selling it 😆