ABSTRACT

This chapter presents an analysis of the inflexibility of the Channel Tunnel project. It assesses aspects of the policy-making process relating to the capacity of various groups to voice dissent over the setting up of the concession, the Construction Contract and technical design. The chapter examines aspects of conflict and mutual adjustment between Eurotunnel and TransManche Link. It draws together various financial issues and assesses the performance of the project based on the development of a number of alternative scenarios and the conduct of discounted cash flow analysis. The chapter summarizes the main themes and findings from the study. It addresses aspects of the policy-making process and contractual issues associated with the development of the fixed link scheme. The Channel Tunnel project is highly inflexible. The scale of the project exacerbated the problems of its organization, which has been much criticized and has contributed to poor financial performance.