Transmission Gully vs Auckland City Rail Loop

Many on the claim that the PPP model used for is responsible for the it opened late, and cost more than budgeted.

But I think that is ideology speaking, not analysis.

So I saw an article this week on the Auckland City Loop (which is not a PPP) and thought it would be useful to do a comparison.

The CRL was estimated to cost $2.5 billion and then up to $3.4 billion when funding was finalised.

Then it rose to $4.4 billion and no one expects it will stay at that level.

But already it has cost 76% more than first budgeted. It will probably end up at over $5 billion.

Transmission Gully went from $850 million to $1.25 billion – a 47% increase, and that is final.

The lesson is often under-estimates the cost of construction projects. This is not unique to .

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