What is the comparison between what has been said before and what is now included in the cost estimate?
The cost information published in 2015 was indicative and based on an initial assessment of capital costs for individual facilities, mainly the energy recovery facility. Cost estimates are subject to inevitable uncertainty in early stages of projects until more detailed work is carried out. A major project such as the NLHPP carries significant inherent risk due to its nature and size, and the number of stakeholders and interfaces involved.
As the NLHPP moves into the delivery phase, it is best practise to establish a thorough, robust and reliable cost estimate for the expected cost, programme and risk.
The comprehensive cost estimate takes into account:
- the work carried out over the last few years to develop the full scope of the project;
- understanding the difficult site conditions;
- the work needed to maintain north London’s waste disposal operations during construction; and
- full compliance with legislation and guidance that has changed over the period.
Our well-evidenced baseline provides us with a reliable assessment against which to measure performance as we deliver the project. It enables us to focus on areas of necessary challenge or improvement and ensure that we effectively manage the risk and issues associated with a project of this size and complexity.
A cost review was carried out by experts in engineering, architecture and waste modelling in 2019. The overall cost of delivering the project is comprehensively estimated at £1.2bn in 2019 prices. This includes the Energy Recovery Facility, as well as the Resource Recovery Facility, EcoPark House, utility diversions, risk contingencies, third party costs, project and technical management and supervision. The overall project budget includes an appropriate contingency, where some degree of uncertainty is present in a large scale, long term project.
We report progress against the project each month and we remain on track within the 2019 budget. This includes ensuring that construction has incorporated safe operating procedures throughout the coronavirus pandemic.
Financial expenditure information will be provided on the supplier payments page of the NLWA corporate website each year.
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