Problem ground conditions send costs on Somerset nuclear power station heading north
Hinkley Point C has become the latest UK infrastructure project to admit it is running billions of pounds overbudget.
Developers China General Nuclear and EDF are set to share an additional cost of between 拢1.9bn and 拢2.9bn for the nuclear power station they are developing in Somerset.
The increases will take the cost of the project up to between 拢21.5bn and 拢22.5bn, compared to an original budget of 拢18bn.
EDF said the costs have arisen as a result of 鈥渃hallenging ground conditions, which made earthworks more expensive than anticipated鈥�.
A contract for earthworks had previously been let to Kier-Bam for around 拢100m but the cost has now risen to between 拢250m and 拢500m, according to EDF.
EDF also said 鈥渆xtra costs [were] needed to implement the completed functional design鈥� adding that the risk of the project running 15 months late had increased.
The exact amount of extra cash depends on the 鈥渆ffectiveness of action plans to be delivered in partnership with contractors鈥� it added.
Hinkley Point C is the first nuclear new build in more than 20 years, with builders including Balfour Beatty, Laing O鈥橰ourke, Bouygues, Skanska and Costain working at the site.
The project overrun is a blow to the British nuclear industry, which has already seen plans for new power plants in Wales and Cumbria pulled by their respective investors.
Ground conditions were also blamed by HS2 chairman Allan Cook for the ballooning cost price-tag attached to HS2, while Crossrail鈥檚 拢2bn budget blow-out has been blamed on increased building costs and poor contractor productivity.
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