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 and the north of England 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”.

Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: “The Government’s commitment to high speed rail is a welcome boost to manufacturers.

“British businesses must be at the heart of delivering this important and high profile project at every stage, and all arms of Government must look to unlock opportunities for UK industry.

“It is a significant opportunity to further strengthen supply chains and help revitalise Britain’s industrial heartlands.”