3 ms·
For those wondering « WTF », the project is fully financed by the contractor. The risk taken by the City is zero. Worst case scenario they rebid after the Borin
by crocal 8y ago
For those wondering « WTF », the project is fully financed by the contractor. The risk taken by the City is zero. Worst case scenario they rebid after the Boring company crashes and burns. For Musk, the business equation thus relies on the costs of construction to be correctly balanced with future revenues obtained from operating the line over the next decades. If you do it right like Hong Kong MTR, it’s a cash cow. If not, well, it’s Eurotunnel.
- PunchTornado 8y agowhat's wrong with the Eurotunnel? they turn a profit every year.
- tonyedgecombe 8y agoThey went into bankruptcy protection after running over budget. Needless to say the original shareholders didn't do very well.
- tim333 8y agoOriginal shareholder here. This is true although I get freeish travel to this day. At least the government didn't have to bail it out and Eurostar did well which is a separate company from Eurotunnel.
- bbarn 8y agoWorst case scenario, they rush to break ground, bore half the tunnel, and Musk's financial house of cards collapses, now leaving us with another Chicago Spire sized mess underground.
- crocal 8y agoThis is not as unusual as you may think. Examples abound in such mega projects where a major civil works contractor default and another one walks in to pick up the mess. In addition, the path of the tunnel will be decided in details and subjected to various authorizations so mess will be limited. Delays will occur but, regardless what Elon thinks, there are plenty of reaaaaally good tunnel makers on this planet that will happily come and finish the job.