Date lodged: 23 October 2018
To ask the Scottish Government whether there have been any additional costs above the tendered price for the Aberdeen Western Peripheral Route and, if so, what they are; whether the contractor in charge of construction has been paid in full, and how much capital must be borrowed to pay for the construction.
Answered by: Michael Matheson 8 November 2018
As confirmed in my statement to Parliament on 1 November 2018, no additional costs have been incurred by the public purse to date.
As the contracting entity is formed by a joint venture of privately run companies, we do not have access to the contractors costs and consequently cannot comment on them.
As is standard in Non Profit Distributing (NPD) contracts, the contractor receives payment when sections of road become available for use. Consequently, the contractor is receiving the full payments due for the sections of road which have been opened to traffic at Balmedie to Tipperty, Parkhill to Goval and Craibstone Roundabout/Dyce Drive.
An NPD contract by its nature means that the construction is privately funded. As such, a capital value of £530 million was borrowed by Aberdeen Roads Limited.