Budget-busting Wolverhampton Metro extension set for independent probe
An independent investigation is set to be launched into budget failings surrounding the delayed Wolverhampton Metro extension.
The 700-metre stretch of track along Pipers Row in the city centre is set to cost £49.4 million – almost £10m more than its original budget.
Now council leaders at the West Midlands Combined Authority (WMCA) are being recommended to commission an investigation into the scheme at a meeting on Friday .
A report to the WMCA board says: "With respect to the Wolverhampton interchange scheme, the accrued value of works instructed and undertaken has recently exceeded the approved budget.
"Not only does this indicate a weakness in cost control practices, it also represents a breach of financial regulations."
The report said the cost has risen by almost a quarter (£9.68m). It says the figure includes sums paid in excess of the agreed budget as well as "potential abortive costs if the scheme was placed on hold to avoid further exposure to cost".
It adds: "The board is recommended to commission a formal independent investigation through the authority’s chair of audit, risk and assurance committee in respect of the scheme."
The extension, which connects the railway station with the St George's tram stop, is years behind schedule and not expected to open until next spring.
It is one of three transport schemes to bust its budget, the others being University station in Birmingham and Westside Metro extension to Centenary Square.
The extra £17.43m required for the three schemes will be taken from the Transforming Cities Fund.
It will be cash that is "not contractually committed for projects within that programme", according to the report.
The report also notes that Transport for West Midlands (TfWM), the WMCA's transport arm, is "changing the way in which it manages, organises and delivers capital projects" in a bid to improve its performance.
It says issues that need to be addressed include managing land acquisitions and "inconsistencies in delivery approach".
It comes after a number of major transport schemes in the region hit trouble, including the Dudley transport interchange, which has been delayed due to issues with securing land.
Meanwhile, the Wednesbury-Brierley Hill extension is the subject of a separate report due early next year after bosses admitted the section from Dudley to Brierley Hill was "extremely likely" to be delayed or cancelled due to a huge funding shortfall.
Transport chiefs say their plans have been hit by inflation and supply chain issues, with the average cost of materials having risen by 17 per cent since October 2021.
