Construction Costs
The project was budgeted to cost £116.2 million, with central government providing £92.5 million of the money. Cost-benefit analysis of the scheme had variously assessed the expected ratio as 4.84, 2.28 (1998 prices) and 1.968, (a higher ratio is better), with the cost rising from an initial estimate of £54 million. In December 2008, the County Council assessed the financial risks of the project as "high"; None of the £12.7 million funding—out of £23.7 million—due to come from property developers had been received by the promoters. In November 2009 the backers of the "cb1" redevelopment scheme around the Cambridge railway station frontage, Ashwell Property Group, had been due to make their £927,000 contribution towards the busway scheme, but were given permission to defer; and entered administration in December 2009. The taxpayer was expected to have to make up any funding shortfall. Cambridgeshire County Council announced it was budgeting £1 million per year to cover potential ongoing costs associated with the busway, through the reorganisation of other transport related budgets.
Repayments for the loans and associated interest would then be recovered from the contractors and future housing developers after the scheme had been completed. Contributions from developers were additionally used to cover the cost of providing artworks and time capsules along the route.
Read more about this topic: Cambridgeshire Guided Busway
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