Regulator orders Heathrow to keep expansion ‘affordable’
02 Dec 2019 By Miles Rowland
The airport regulator has stipulated that the construction of Heathrow's expansion project should be kept "affordable".
A new clause in the airport’s licence, inserted by the UK Civil Aviation Authority (CAA), places conditions on Heathrow to focus on the "economy and efficiency" of its expansion plan, which includes a third runway that is set to open by 2026, the rerouting of a section of the M25 and terminal extensions.
The measure has been implemented amid concerns that expansion could exceed the previously stated budget of £14bn, prompting calls from backers of a rival proposal to undergo a review in the vein of Doug Oakervee’s HS2 probe.
A CAA spokesperson said: “Heathrow Airport Limited needs to be efficient in everything it does. This is why we have introduced a new licence condition for the airport’s operator on economy and efficiency.
“The licence condition covers the operation of the airport and is also one of the tools the CAA is developing so that Heathrow expansion is delivered in a way that is affordable, financeable and, critically, in the interest of consumers.”
A Heathrow spokesperson said: “Heathrow is extremely efficient and viewed as a benchmark for major infrastructure projects.
“The current level of scrutiny and transparency around capital investment at Heathrow is already unmatched at any airport globally. We respect the CAA’s new licence agreement and we will comply accordingly.”
Heathrow is preparing a tender for its expansion and a number of contractors have been linked with the project, including Bam, which revealed to Construction News last month that the airport was interested in using its 3D printing technology.
The plan to build a third runway by 2026 is currently being challenged by campaigners, including London mayor Sadiq Khan, in the Court of Appeal.