The UK government has rejected the latest cost estimate from project company HS2 Ltd for the HS2 high-speed rail (HSR) project. The estimate had increased the cost from €57 billion (GB£49 billion) to €66 billion. This was announced in the semi-annual report on the project. The reason given for the rejection is that the cost estimate was prepared by HS2 Ltd before the company was informed of the decision to cancel phase 2 of the project. In addition, the Department for Transport (DfT) is making different assumptions about how much cost risk is still addressable. The government has asked HS2 Ltd to update its cost estimate, taking into account the revised scope of phase 1 and the cancellation of the extended project. In addition, the government has announced that it will support HS2 Ltd by appointing a Managing Director to focus on delivering HS2 on time and at the revised budget.
