Cost of Lisbon metro expansion rises another €222.8 million
Image: Lusa

Cost of Lisbon metro expansion rises another €222.8 million

Government cites “several vicissitudes”

Works on three lines of the Lisbon Metro will cost €222.8 million more than the initial estimate, an increase justified by rising prices, according to two resolutions published today in Diário da República, writes Lusa.

At stake is the expansion of the Red line, budgeted in November 2020 at €304 million – a value now revised up to €405.4 million – and the extension of the Yellow and Green lines, with a view to building a circular line, with planned investment, in 2018, of €210 million, but which has since risen to €331.4 million.

The two projects were initially budgeted at €514 million, an amount that has risen to €736.8 million plus VAT, which means a cost increase of 43%.

The cabinet resolutions, signed by minister of the presidency Mariana Vieira da Silva, justified the review of the investment, in the case of the Red line, with the “updating of prices that occurred between the conclusion” of the feasibility study, in November 2020, and “the time when it is estimated to start the public procurement procedure for the contract, in 2022,” which translates into “an increase in the total cost of the investment of €101.4 million.

Regarding the extension of the Yellow and Green lines, the plan had a cost, according to a cabinet resolution in December 2018, of €210 million, which was revised in June 2021 to €240 million, following “vicissitudes that determined an increase in the costs involved in the implementation of the various undertakings“, based on “the change in the construction and public works market”, coupled with “the times of the public procurement procedures in question”, which made the previously authorised values “insufficient”.

Now, the government justifies the revision of the investment to €331.4 million with “several vicissitudes” during the course of the works that could not be anticipated, “such as geological peculiarities not detected in the surveys carried out and inconsistencies between the cadastral surveys and surveys that preceded the works,” which forced “temporary vacancies, expropriations and reinforcements of existing buildings”.

“Currently, and considering that the difficulties in the supply chains and the circumstances resulting from the Covid-19 pandemic, the global crisis in energy, as well as the effects of the war in Ukraine have caused a sharp increase in the prices of raw materials, materials and labour, with special emphasis on the construction sector, which generated a sudden and unpredictable increase in prices, which has consequences not only for the price review of contracts under execution but also for the base prices of contracting procedures to be started, it is concluded that the amounts authorised are insufficient,” says the executive.

The expansion of the Red line is funded by the Recovery and Resilience Plan at €304 million and €101.4 million through “sums inscribed or to be inscribed” in 2026.

The extension of the Yellow and Green lines is funded by €103 million from the Operational Programme for Sustainability and Efficiency in the Use of Resources (POSEUR), €137.2 million from the Environmental Fund and €91.2 million from the state budget in 2023 and 2024.

The Lisbon Metro expansion plan is centred on the creation of a circular line capable of reducing transfer times and extending to areas of the city which will benefit from the opening of two new stations – Estrela and Santos – with the extension of Rato station (Yellow line) to Cais do Sodré station (Green line).

The expansion also includes the extension of the Red line between São Sebastião and Alcântara, with four new stations – Amoreiras, Campo de Ourique, Infante Santo and Alcântara.

The Lisbon Metro operates daily with four lines: Yellow (Rato-Odivelas), Green (Telheiras-Cais do Sodré), Blue (Reboleira-Santa Apolónia) and Red (Airport-São Sebastião).

Normally, the metro runs between 06:30 and 01:00.

Source: Lusa