Dudley to Brierley Hill Metro link final leg hits cash shortfall

The 6.8-mile route has already been split into two phases after costs ballooned to more than £550million due to inflation and supply chain issues.

Now construction of the second phase from Dudley town centre to Brierley Hill has been carved up into smaller chunks due to a major funding shortfall.

At a meeting next week the West Midlands Combined Authority (WMCA) is set to sign off on a funding package that will see work start on a rejigged second phase dogged by financial issues.

A report to the board says Phase 2a will run from Dudley to Waterfront. Phase 2b will then continue on to an "interim terminus" at Merry Hill Shopping Centre – providing Dudley Council agrees to chip in funding.

The report goes on: "Phase 2c, from Merry Hill to Brierley Hill, currently remains unfunded and options to provide public transport connections will continue to be evaluated and assessed."

It adds: "Connectivity from this interim terminus to connect onwards to Brierly Hill High Street can be provided through a combination of pedestrian, cycle and demand responsive bus solutions."

The WMCA says it "maintains an ambition" to continue the extension deeper into Brierley Hill, dependent on further funding becoming available.

West Midlands Mayor Andy Street, who chairs the WMCA, said: "It wasn’t an easy decision to phase construction last year, but against a backdrop of rising energy, borrowing, and supply costs we really had little choice.

"Now, however, we are ready to press on again subject to WMCA board approval and start construction on Phase Two with Phase One already well underway.

"The reason this line is so important and why our commitment has remained steadfast is that it will provide people in Dudley with a modern transport system that better connects them to opportunities across the West Midlands. The sooner we get it built, the sooner people can reap those benefits."

The report says a new business case for the extension will be completed to factor in rising construction costs and the "reduced demand" for Metro travel post-Covid.

It adds: "There remain significant issues in the international supply chain for materials and energy costs which create a level of uncertainty in construction planning which cannot be completely removed at this stage of delivery."

The WMCA said additional costs for the line will be covered by dipping into a £1.05billion transport fund it secured from the Government. The line is also being part-funded by £60m from the Department for Levelling Up, providing the business case is backed by ministers.

The projected total cost of the line has not been made public.