Reply To: New Airport Contract signed-29 Billion

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It would probably cost a tad more than $28bn, BUT I would suggest that the Turkish airport will also cost quite a bit more than its current estimate, such is the nature of major infrastructure.

No one has properly costed the Thames Hub proposals, so it’s hard to say whether we could build it for less than £20bn – personally I think it could if you excluded the road and rail connections needed.

However it’s important to note two things:

1. Infrastructure spend is much more akin to investment, with reductions in unemployment, suppliers increasing turnover, and the longer term benefits and taxes paid by the businesses it supports long into the future. It’s not really a cost but a process with delivers money-generating assets.

2. The funds to deliver such projects are nowadays much more easily available in the form of Sovereign Wealth Funds, UK Pension Funds and public and private subscription than was ever the case in the past – if properly negotiated (and that’s a big if) there’s no reason to suggest it would impact our deficit reduction plans in the medium term.

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