Chancellor George Osborne kick-starts £11.8bn HS2 bidding process

The High Speed 2 rail project hit a major new milestone today (September 24) when Chancellor George Osborne announced details of the bidding process for work on the first phase of development.

Companies will be able to bid on at least seven new contracts worth £11.8bn.

Speaking at an event in Chengdu as part of his five-day tour of China, the Chancellor hoped to encourage some of the country’s largest investors to get involved in HS2, as well as a number of other UK infrastructure projects.

The Chancellor said: “This government is committed to rebalancing our economy and building a Northern Powerhouse, and improving transport links and launching HS2 is key to supporting long-term economic growth across the North and Midlands.

“That’s why I’m here in China today opening the bidding process for construction contracts worth £11.8bn, which will propel HS2 forward.”

He added: “We are truly entering a golden era of cooperation between our two countries, and it’s crucial that businesses and communities from across the UK feel the full benefit of forging closer economic links with China.”

Construction work on phase one of HS2 is scheduled to begin in 2017. When complete, the line is expected to cut travel time between Birmingham and London by almost half.

Patrick McLoughlin, the Transport Secretary, commented: “HS2 provides an excellent opportunity for businesses across the UK with 25k jobs created during construction and 3,000 when up and running.

“The start of the procurement process for these significant contracts is a major step towards construction on HS2 getting underway in two years’ time and a massive opportunity to help rebalance our economy long before the trains start running in 2026.”

The winners of the contracts will build 230km of bridges, earthworks and tunnels and create thousands of employment opportunities in the UK-wide construction industry, according to HS2 Ltd’s chief executive, Simon Kirby.

He continued: “Together we will transform intercity rail travel in the UK, build specialist skills and expertise across the country, create at least 2,000 new apprenticeships and build a legacy to inspire the next generation of young engineers.”

Now, the government is organising an HS2 partnering day in which Chinese and UK firms will have the chance to meet and team up for bids.

Further, an upcoming HS2 regeneration tour will allow Chinese investors to visit areas of London, the Midlands and the North that present commercial opportunities, meeting with local authorities near the sites proposed for HS2 stations.

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