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Well we are currently planning on spending 54 Billion on bad bank assets (mostly loans secured on development/speculation property) optimistically valued at 47 Billion.  (plus perhaps another 12 Billion direct investment in banks to make them solvent) - so we are currently planning on "investing" a lot more money than would be required to build an Irish sea tunnel.

If by some miracle that level of value is ultimately recovered over the next 10 years we could perhaps do worse that using the proceeds to pay off some of the national debt and invest in some major infrastructural projects which reduces our long term dependence on CO2 intensive transportation.  The costs you outline don't seem outlandish, although the government has a track record of mismanaging infrastructural projects to the extent that they come in at two or three times the original budget.  

The Chunnel experience is not encouraging.  Have tunneling technologies, techniques, and cost factors improved dramatically since?  No doubt prevailing ideologies would require some PPP type funding architecture which would require a huge risk premium to attract private investment.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Dec 20th, 2009 at 07:15:57 AM EST
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The Chunnel overspending had in part financial reasons -- as I told at the start if my very first reply, if you want to avoid this, don't give the project to a private consortium that has something even worse than a bad record at managing big projects: no record and no experience at all. But yes, technologies improved; the Gotthad Base Tunnel is even longer than the Chunnel and is under up to 2000m rock with some rather difficult geology, but will cost less despite significant cost overruns too, see the figure I quoted.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Dec 20th, 2009 at 07:33:08 AM EST
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