LOX Summary Report: Executive summary cost report (2003)

Summary of the Cost Report prepared by Gardiner & Theobald: International Project & Cost Management.

PRE-FEASIBILITY ESTIMATE

AIRPORT (120 mppa)	£ million
Runways (4) / taxiways / aprons / airside roads	2,900
Passenger facilities: Terminals / Satellites / Rail station / Car parking / Landside roads	6,143
Air cargo centre (including rail head)	312
Aircraft maintenance facility	468
Airport ancillary facilities including air traffic control	1,108
Other costs	258
Total airport construction costs	11,189
Total airport cost per mppa of capacity (£)	93.24
DEVELOPMENT ZONE	£ million
Development zone construction costs	2,165
OFF AIRPORT SURFACE ACCESS	£ million
Motorways	628
Trunk roads	353
Load roads	149
Rail links	253
Railway rolling stock	41
Professional, Local Authority and Statutory fees	Excluded
Land acquistion, compension, legal costs and Public Inquiry costs	Excluded
Total surface access costs	1,424
Total surface access cost per mppa of capacity (£)	11.87
Note 1. Unless stated to the contrary the above costs include: Construction Management organisation costs and fees; design reserves and contingencies; land acquisition, compensation, legal and Public Inquiry costs. 2. All costs are based on 1Q 2002 prices.

AIRPORT PHASED CONSTRUCTION COSTS

			Cumulative phases:
Pre-feasibility Estimate:			1	1-2	1-3	1-4	1-5	1-6
Phase	Capacity provided	Phase cost	£ million
1	30 mppa	5,092.4	5,092.4	5,092.4	5,092.4	5,092.4	5,092.4	5,092.4
2	60 mppa	2,334.0		2,334.0	2,334.0	2,334.0	2,334.0	2,334.0
3	Runway 2	979.1			979.1	979.1	979.1	979.1
4	90 mppa	2,209.2				2,209.2	2,209.2	2,209.2
5	120 mppa	2,314.6					2,314.6	2,314.6
6	Runways 3 & 4	424.7						424.7
Total		13,354.0	5,092.4	7,426.4	8,405.5	10,614.7	12,929.3	13,354.0
Cumulative cost per mppa (£)			169.7	123.8	140.1	117.9	107.7	111.3
Cumulative cost per mppa (£) excluding the Development Zone construction costs:								93.24
Note 1: Costs are based on 1Q 2002 prices. 2: Costs include the Development Zone construction costs of £2,165 million.

Pre-feasibility estimate: exclusions and assumptions

The following exclusions and assumptions were made during the preparation of this pre-feasibility estimate: –

1. No cost allowance is included for the following: –
   
   
   1. Value added tax;
   2. Professional, Local Authority and Statutory fees (Off Airport Surface Access Estimate only);
   3. Inflation beyond IQ 2002;
   4. Land acquisition, compensation payments and legal fees associated therewith (Off Airport Surface Access Estimate only);
   5. Finance charges;
   6. Capital allowance recovery;
   7. Any requirement for archaeological investigation and site investigations other than shown on the drawings;
   8. Noise impact survey and associated fees therewith;
   9. Public Inquiry Costs (Off Airport Surface Access Estimate only);
   10. Removal of excavated material off site & associated land fill tax;
   11. Abnormal ground conditions;
   12. Railway fencing, overhead line electrification equipment and any adjustments to signalling including capacity of solid state interlocking signalling and Strategic rail network improvements (LOX shuttle upgrade; Oxford, Bletchley, Sandy link; HEX link West of England main line adjustments; Great Western/CTRL link and Cross Rail) - all to be by Railtrack at their cost);
   13. Urban expansion in surrounding area.
       
2. The assumptions made were: –
   
   
   1. Normal ground conditions & no site contamination;
   2. All excavated material re-used on the site therefore avoiding removal off site and associated landfill tax;
   3. G & T Queries / Replies Item Nr's 1 to 39 inclusive;
   4. Railway fencing, overhead line electrification equipment and any adjustments to signalling including capacity of solid state interlocking signalling – all to be by Railtrack and at their cost);
   5. Fitting out to Customs, Excise, Police & Immigration areas have been included in the estimate. All other tenants fitting out to be by the tenants and at their own cost;
   6. Allowances for archaeological investigation limited to those shown on the drawings;
   7. The works are tendered in competition to achieve the best possible price;
   8. Fuel supplies to the airport site are made by rail to the fuel farm.
3. Costs have been estimated without detailed specialist structural, services or architectural input.
4. No detailed information is currently available from Statutory Authorities regarding diversion of existing services nor the provision of new mains services & the sufficiency of existing mains supply infrastructure.

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