Chancellor launches bidding process for HS2 contracts in China

LAUNCHING the bidding process for HS2 contracts while on a trade visit to China, Chancellor George Osborne urged firms there to invest in the high-speed rail project

The seven contracts cover the first phase of the HS2 link between London, Birmingham, Manchester and Leeds and are estimated to be worth £11.8bn.

Osborne, who has faced some criticism from anti-HS2 campaigners for launching the process when the HS2 Bill has not yet completed its passage through Parliament, announced the start of the procurement process for bridges, tunnels and earthworks.

Speaking in Chengdu, he said: “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.

“We are truly entering a golden era of co-operation 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.”

Transport Secretary Patrick McLoughlin described the start of the civil engineering procurement process as “a major step towards construction on HS2 getting under way in two years’ time and a massive opportunity to help rebalance our economy long before the trains start running in 2026”.

Greater Manchester Chamber of Commerce policy and marketing director Chris Fletcher, also welcomed the announcement.

“This is excellent news for the huge number of people who have kept firm their support for HS2  over a number of years.

“The last 12 months have seen a positive shift change in the language being used around HS2 and with the announcement today it really is now a case of when and not if HS2 goes ahead.

“The scale of what lies ahead is huge and is without doubt the largest civil engineering and construction project in most people’s lifetimes.

“It is important that businesses seize this opportunity. The economic benefits from HS2 start now, not just after completion. It should be noted that this is for phase 1 and we await news on phase 2 –  the connecting northward link from Birmingham as there will be similar economic benefits on offer from this mirroring the news today.”

Clive Drinkwater, UKTI regional director for the North West of England, said: “Ten years ago the biggest export commodities to China were scrap metal and chemicals and now it is luxury cars, indicating the growth we are seeing in Chinese consumer spend.

“As China moves from a manufacturing and exporting economy to one with a burgeoning middle class that boasts increased spending power, the market for high end, luxury and heritage products has improved.

“North West businesses excel in these markets, possessing outstanding pedigree in industries such as food and drink, fashion automotives and aerospace and companies in these areas will be able to realise their exporting potential in the growing Chinese consumer market.

“Over the coming years we will also see a growth in the Chinese creative, professional and financial industries, providing enormous opportunities for our region’s unrivalled tech hubs and service sector, from the Baltic Triangle in Liverpool to MediaCity in Salford.

“UKTI has helped many North West businesses enter the Chinese market with great success, and we look forward to helping even more do so over the coming years. We’ve done very well, but the best is yet to come.”