Construction companies dictate prices
Deutsche Bahn announces even more expensive renovations
14.06.2024, 13:52
Listen to article
This audio version was artificially generated. More info | Send feedback
Deutsche Bahn wants to bring its busy routes into shape with general renovations. However, the costs are likely to rise considerably. The company will have to budget over 300 million more for the first section between Frankfurt and Mannheim.
Deutsche Bahn has apparently informed parliament of even higher costs for the upcoming general renovation of its heavily used routes. CEO Richard Lutz and other board members have informed the transport and budget politicians of the traffic light coalition. Several participants in the confidential meeting unanimously reported this to “Spiegel”.
At the beginning of the round, a confidential document was distributed which “identified the reasons for the price increases” and promised timely communication of the feared additional costs. Some time ago, the company had already had to announce additional costs of around 35 percent for the so-called Riedbahn renovation. Accordingly, the imminent complete closure and upgrading of the line from Frankfurt to Mannheim increased in price by over 300 million from the initially planned 968 million to over 1.3 billion euros.
According to its own statement, the company is “in a difficult position in negotiations with the construction industry due to public knowledge of the great importance of the measure”. This means that the construction companies can practically dictate the prices, since Deutsche Bahn has promised politicians and the public that it will be implemented quickly. In addition, the document goes on to say, the “lack of long-term forecasts by bidders due to individual tenders” is becoming a problem.
According to participants in the round, management did not want to say how much more the renovation will cost taxpayers and when the public will be informed about the full extent of the increase in costs. The document simply states: “We will communicate the cost increase, its causes and the resulting findings for further action in a timely manner.”