Covid impact to delay Tideway and up costs to over £4bn
In a note to investors, Bazalgette Finance has forecast the impact of the Covid pandemic is likely to add nine months to the construction scheduled for the Thames Tideway Tunnel and up its costs by £233m taking them over £4bn.
The investor update said modelling by Bazalgette Finance’s sister company Bazalgette Tunnel – trading as Tideway and the company delivering the Thames Tideway Tunnel, – showed construction work, due for completion in 2024 was now “likely to be completed in the first half of 2025 adding nine months to its current schedule.”
It said the revised forecast would add £233m to the previous one, “taking the estimated project cost to £4.133bn.”
Bazalgette Finance said Tideway was “in discussions with Ofwat on a package of measures that would mitigate the financial impact of COVID-19 on the company.” It anticipated the talks would come to “full agreement in the coming months.”