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In Milan, extending the metro becomes an obstacle course

Crossings. After the tender for the M1 extension was deserted, the M5 extension towards Monza is at risk: another 400 million is needed

30 September 2024

MALTEMPO A MILANO PIOGGIA OMBRELLI OMBRELLO DUOMO METRO METROPOLITANA STAZIONE FERMATA

3' min read

Two new problems, one after the other, for Milan's metro system, in addition to the outdated one of how to make ends meet for the construction and management of Line 4, which is currently being opened and will weigh on the municipal budget, for the next few years, at least 100 million each year.

No operator for the M1

Two problems, we said. The first big obstacle is finding an operator for the extension to the west of Metro 1, after the tender went unsuccessful (more precisely with only one null bid). The operators considered that the auction base indicated by the City of Milan, of around 500 million (433 million plus VAT), was not interesting, as they were probably already involved in many other tenders in Italy, financed by both the NRP and the various building bonuses. The 3.3-kilometre extension project will still have to wait. It was supposed to be ready years ago, but between the pandemic period and the lack of funds, the tender was only opened last May.

In the meantime, Palazzo Marino's top management has asked the Ministry of Transport to review the project and the timeline, and to maintain the validity of the earmarked fund until 30 November 2025 by eliminating the construction of the depot, so as to recover about 60 million. The latter will then be realised separately, at a later stage, with a new tender (and with other funds to be found, however). The tender will be reopened immediately with these new requirements.

M5, more resources needed

Second snag: the extension of Metro 5 towards Monza is also at risk. The municipality has redefined the financial plan, also after the findings of the Lombardy Region's Environment and Climate Directorate General, which issues the Paur - the regional authorisation procedure responsible for evaluating the work and judging its urban conformity and public utility. Based on the additional work and the updated cost of raw materials, at least an additional 400 million is needed, considering that the estimated value to date is 1.3 billion, for 13 kilometres and 11 stations, from Milan to Sesto San Giovanni, Cinisello Balsamo and then Monza (plus a depot).

Last August, the Municipality of Milan's Infrastructure Department clarified to the MIT that "in the coming months MM S.p.A. will proceed with the updating of the Final Project to incorporate the prescriptions expressed by the Authorities.

The update will also concern the economic estimate of the work, not only to take into account the design changes or new works generated by the aforementioned prescriptions, but also to align with the current price lists. In fact, the amount of the work, on the basis of which funding was requested, was obtained by adopting the 2018 price lists'. We are therefore talking about 'an increase in the order of 35-40%. This figure is to be taken as entirely indicative, but it certainly allows a working table to be set up to identify the possible ways of finding additional resources'.

Now the Municipality of Milan and its investee Mm will update the project by incorporating Paur's requirements. As stated in the letter, the Municipality also requests 'the extension of the deadline for the assumption of the legally binding obligation to 31 December 2026', which means the extension of the validity of the financing already received for another two and a half years. Palazzo Marino, however, specifies that it will not be able to intervene in the realisation of the work with new resources except for the section that concerns it, the one within its territory (a very small part), and that therefore the government and the Lombardy Region will have to put other funding on the table.

There is therefore a risk that a symbolic work, the first Italian metro linking two provinces, will end up, at least temporarily, in the drawer. It has already been financed to a large extent, with 300 million euro made available by Lombardy, 36 million by the Municipality of Milan, and as much as 600 million by the government. As much as EUR 900 million already available could therefore remain idle, pending a new project.

A table for drivers

Meanwhile, the city's subsidiary Atm is trying to curb the haemorrhaging of drivers: there are fewer and fewer of them, partly because of low salaries and partly because of difficult shifts. A problem that obviously reduces the efficiency of Milanese transport.

Atm's top management has thus begun a discussion with the unions in an attempt to bring about a structural reform involving the shifts of the 5,000 drivers, work-life balance and the problem of affordable housing, given that the average salary is around EUR 1,500, which is quite low for Milan.