New Forth road bridge: German firm tipped to win contract
Iain Gray: Dunbar is best option. Picture: Dan Phillips
A MAJOR contract for the construction of the new £1.5 billion Forth road bridge is poised to be handed to a German firm rather than a Scottish business.
Industry sources and politicians claim that the deal to supply cement for the new crossing is about to be handed to Hochtief, one of the largest construction firms in the world, under EU rules.
The decision comes even though Scotland’s only cement manufacturer, Dunbar-based Lafarge, has also bid for the contract, which it is claimed will help maintain more than 130 jobs in the area.
Former Scottish Labour leader Iain Gray, in whose East Lothian seat Lafarge is based, said last night that if the firm did lose out, claims by SNP ministers that its capital investment was helping sustain the Scottish economy would be shown to be a “bad joke”.
Backers argue that a decision to hand the contract to a German firm would make no sense, as it would entail shipping cement in across the North Sea, rather than a 40-mile journey by rail if Lafarge wins.
Transport Scotland said last night that no decision had been made, but the claims come days after it emerged that a £790 million contract for 37,000 tonnes of steel in the bridge has been awarded to Chinese, Polish and Spanish firms.
Not a single Scottish firm bid for the contract, prompting a furious response from opposition parties who asked why multi-million-pound deals on the most prestigious project for a generation in Scotland are disappearing out of the country.
But Transport Scotland argues that the rigorous procurement process it has set up could save taxpayers nearly £1bn compared with initial estimates on the cost of the bridge.
The total bill is now expected to come in at between £1.4bn and £1.6bn, well below previous estimates of £2.4bn. The financial pressure to make savings is acute, as payment for the bridge is coming from the Scottish Government’s £30bn-a-year budget when ministers are attempting to deal with a freeze on their annual block grant.
Officials point out that they have to follow EU rules on tendering which stipulate that any company across the single market can bid for contracts.
The suggestion that Hochtief is favourite to win the cement contract circulated within industry and political circles last week.
Speaking to Scotland on Sunday, Gray said: “If this Scottish Government contract goes to a German company it will be bad news for my constituents in East Lothian. Over 150 of them work at the Lafarge cement factory in Dunbar. The factory has been badly hit by the crisis in construction and the workforce has suffered long periods of short-time working.
“They will practically be able to see the new Forth Bridge from the factory, but instead cement will be shipped in.”
He added: “Lafarge has a rail halt at the Dunbar factory, so not only would the material have to travel the shortest possible distance – it would not even need to go by road.
“Scottish ministers are well aware that this environmentally preferable solution exists, because I sent them the details months ago.”
He went on: “This is the biggest infrastructure project in our history, it dominates the whole capital programme, and it starts to look as if it is stimulating every economy except our own. Frankly, I am fed up of Alex Salmond telling us that he needs more powers or more money to combat unemployment when his government is so woefully inept at deploying the resources they do have for the benefit of Scotland.”
Transport Scotland said it had sought out local contractors with the aim of ensuring as many as possible had the chance to compete for tenders. But they pointed out that the main contracts for the bridge had to be procured under “strict EU procurement law”.
The new bridge is expected to be built by 2016, replacing the current Forth Road Bridge as the main crossing for cross-Forth traffic.
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Comments
There are 80 comments to this article
Page 1 of 6
Chris63
Friday, February 17, 2012 at 01:35 AMAye right "The total bill is now expected to come in at between £1.4bn and £1.6bn, well below previous estimates of £2.4bn." Have they really not learned anything at all from the tram project ???? One wonders , how they got that contract as low, and then no doubt be coming up with reason that it'll end up costing 3x the original cost. That contract should be looked at with a fine toothcomb, instead of grinning of it being as low- there will be a reason for it.
david@ferryfair.co.uk
Tuesday, January 31, 2012 at 10:09 AM"EU Procurement Law"? Why don't we just ignore that and award the contract to the Dunbar contractor? What would the EU do to us if we did? Six strokes of the belt? A hundred lines? If this goes to Germany rather than Scotland it'll be an absolute disgrace.
Jacqueline Hyde
Monday, January 30, 2012 at 10:36 AMWhether it's trams, bridges, railways, windfarms, schools or whatever, it appears that Jubbly Jowls and his happily blinkered pals are bending over backwards to use Scottish taxpayers' money to create jobs in Germany, Ireland, Netherlands, Spain, Denmark, etc and to protect the economies of those countries at the expenxse of our own. Presumably the man will even contract out the Scottish Government to Greece or Portugal when independence arrives.
bryanm1601
Monday, January 30, 2012 at 09:31 AMAs an employee of the Dunbar based cement firm i have to comment as follows: In Scotland, the construction industry was hit particularly hard during the 'economic downturn' and we as a cement supplier ran at less then 50% output when our southern colleagues were producing and selling flat out. When looking optimistically on the horizon and when things were due to improve, we all viewed the New Forth Bridge as a much needed boost to our economic position. For us it all made sense, local suppliers must mean the most economic way of getting the cement to the location of the bridge build. Nothings guaranteed in life but surely given our collective locations we must be in a strong position? It doesn't seem this will be the case. To a man, (and women), we are all disgusted at the thought of the contract going outside the country in times when a boost to the economics of Scottish firms is badly needed. It doesn't matter whether it may be a German supplier that wins the contract, the mere fact that the Scottish economy will struggle to benefit from this any way other than perhaps boarding the construction team (as i'm sure they will not be Scottish based eiher) is disgraceful and does make one consider their political position when decisions such as these are made that directly affect you. Whether this decision affects mine or my colleagues future employment is yet to be ascertained but i now assume that a conversation will take place that would not have, had the contract remained in Scotland. If this is what independance means Mr Salmond, you can keep it.
concernedoldone
Monday, January 30, 2012 at 12:51 AMThe Scottish Government should ignore EU regulations and create jobs here in Scotland to build Scottish Infrastructure Projects. It will be an utter afront to the Scottish People to have Germans build OUR bridge. The home of Thomas Telford one of the world greatest bridge, road and canal builders and we asking the Germans to build our bridge. Surely here in Scotland ,where we have one of the best educational systems in the world , we have somewhere we have created a exceptionally talented civil engineer who could design and lead this project. It would be an incredible waste to ignore home grown talent. With the magnitude of this project this money should be feed back into THIS COUNTRY'S economy and NOT ( REPEAT NOT) into the German economy. It is about time this government both here in Scotland and in Westminster stop giving jobs abroad and focus on keeping jobs here and employing some of the near 3 million unemployed people instead of constantly inferring that they are 'workshy' . Create good jobs and you will find out that the unemployed are not workshy and you will reduce the benefit bill and you will end up with a great bridge. Built by the people of Scotland for the People of Scotland. Start searching for the Talent here in Scotland ! Scottish people come FIRST.
piedodger
Sunday, January 29, 2012 at 11:54 PMIf it partly to do with keeping costs down? Next we will be hearing from the moan trolls on this bb saying the bridge construction price is to high, cant win :)
day20
Sunday, January 29, 2012 at 11:41 PMI enter this debate seeing it moving between two political parties. Parties play politics with adult's and their children's lives as they enjoy the privileges of office and parliament. Large infrastructure projects do not just happen they are discussed in political, governmental and business circles at least, and for many years. It is widely known a large bridge needs steel, designing and building. Scottish Economy residents, children and adults are easily capable of making, designing and building things. There is nothing, not in EU contractual rules preventing ScotsScottish Economy Residents from getting together to build a bridge. There is Politics and public contracts politics. Some also highlighted no Scottish bidders and propensity for multinationalstransnationals. Public Contracts Scotland (website) where invitations to tender and contract awards are published often hints of the failings to create an economy(ies). That is something all politics needs to address together. What can stop bidders? Well skills, capability and cost are common defenses. But in Scotland there are Engineers and engineers galore. Bankers abound. Lawyers and Architects inhabit all over the place. Universities and Colleges call-out from every nook and cranny. And these vocations just scrape the barrel. What things less mentioned are stopping a vibrant Scottish Economy? Politics; Quangos; Civil servants; Public Authorities; Big Business lobbies etc. Partly self-interest is involved, partly moves were made to help take-up people as big industry and business lost jobs. But now they and big business work together unhealthily to hide poorer wider economies and unemployment. They suffocate attempts to create new bigger economic activity. A PQQ (pre-qualification questionnaire) can stop a potential bidder. An ITT (invitation to tender) can go out again. The grapevine can persuade or dissuade the significant time, cost and effort of putting together tenders. The awarding process can weigh differently, cost and quality often are. An awarding body can target areas disparate from achieving an overall vibrant flourishing Scottish Economy. All these and more are played in public contracts all the time - aren't they? The present Power has politically moved on Energy, Law, Policing, Infrastructure and Business lobbies to establish its power base. This is what the last Power did. Whilst the players play a serious game of politics their supporters and children of particular clans, clubs, religions or other distinguishing category easily named are (always) losing out in creating vibrant economies. WeScotland's economy fails to materialize as anything remotely like a European or World powerhouse. If the Economy does move East (effectively) what will it leave behind it. We may need to sell bridges; design, make, and build large infrastructure things. Perhaps we may not, but alternatives will be required. I noticed someone mentioned FDI (Foreign Direct Investment?) - how does this work; is that a financial instrument for buying a bridge elsewhere and getting some kind of refund here? Would the business spend some of the money they are paid whilst in the foreign land? Who would get that bit?
day20
Sunday, January 29, 2012 at 11:30 PMStart typing your comment here:
Anagach
Sunday, January 29, 2012 at 10:25 PM66 Simonsaid Industry in Scotland was strangled by the socialist commie Unions, clocking-in and sneaking oot fur a bevy was rife on Clydeside, ----------------------------------------------------------------------------------------------------- Thats right Ravencraig, the most effcient steel mill in worker hours per tonne was closed because of the Unions and alcoholism and not because British Steel spent all the development money on a Welsh plant and the government had a plan to close in Scotland and focus down south. And thats what Simonsays..... so it must be true.
Anagach
Sunday, January 29, 2012 at 10:19 PMWhere have all the Unionists been living, the heavy industry is a thing of the past - they closed it all.
footdee
Sunday, January 29, 2012 at 07:27 PMAncient Wisdom Sunday, January 29, 2012 at 12:22 PM The SNP fails once again! Foreign steel,-----------------it was the unionists who closed down the Scottish steel plants
kirk jjc
Sunday, January 29, 2012 at 06:55 PMbuy steel from china, no complete madness they have been bombed out of the middle east construction sector for inferior material
mmiller555
Sunday, January 29, 2012 at 05:44 PMAt the end of the day we should be building a tunnel that will never be shut. Why we are building a bridge when tunnels can be bored so well under the channel is a mystery to me. Cheaper to build as well. Economics of the madhouse I say!!!
Hans Munchen
Sunday, January 29, 2012 at 04:46 PM"...Krauts rule the world..." You may like to read that ACS, a leading Spanish construction firm is holding more than 50 percent of Hochtief. The fact that Hochtief is now mainly Spanish though might not diminish your anger. Especially when looking at the parliament building in Edinburgh.
Simonsaid
Sunday, January 29, 2012 at 01:41 PM#62- M78 Steel production on a large scale was torpedoed by Thatcher, after telling the workforce they were the most efficient in Europe. ================================================ You either have an extremely short memory, been reading the wrong history books or you simply have not been paying attention. Industry in Scotland was strangled by the socialist commie Unions, clocking-in and sneaking oot fur a bevy was rife on Clydeside, That’s why Jimmy Reid, too late, harangued his union members not to be bevying when they should be working. The car industry was likewise choked to death by persistent strikes.
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