The project to turn the network of rail lines in Cardiff and the Valleys into an electrified South Wales Metro is now expected to be significantly over its £734m budget.
The Welsh Government's transport body, Transport for Wales, said at this stage it couldn’t give any indication as to the expected overspend, with a range of projections currently being worked through, but it is likely to run into tens of millions of pounds. The project is not expected to be finished until 2024, a year later than previously expected.
The Metro, with its complex supply chain, has been impacted by the pandemic related material availability issues and surging construction inflation which is running higher than the official rate of inflation - which the Bank of England said is expected to hit around 10% this year.
