EU transport projects face €40bn overrun

In 2004, the European Union identified 30 road, rail and sea transport schemes as priority projects for the purpose of integrating the economies of the bloc’s 27 member states, promoting their competitiveness and strengthening sustainable economic development.

Now, in a report from PwC for the European Parliament, it is suggested that the projects will cost far more than first thought, making it uncertain how some financially strapped governments will find the necessary funds, according to an independent study.

The report blames the €40bn ($63bn, £32bn) cost overrun on poor project management, planning difficulties, changes in project specifications, lawsuits and lack of funding.

European Commission: DG Energy and Transport: Trans-European Networks: Trans-European Transport Networks http://ec.europa.eu/ten/transport/index_en.htm

European Parliament: Transport and Tourism Committee http://www.europarl.europa.eu/activities/committees/homeCom.do?language=EN&body=TRAN

PwC: The trans-European transport network: from aspiration to reality, 2004 http://www.pwc.fr/the_trans-european_transport_network1.html

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