Dutch government authorities have agreed to allocate a total of EUR 1.4 bn for the further development of the prestigious Zuidas business district in the south of Amsterdam.
Dutch government authorities have agreed to allocate a total of EUR 1.4 bn for the further development of the prestigious Zuidas business district in the south of Amsterdam.
The funding will be used to create an underground tunnel for the A10 motorway to facilitate the creation of a new urban district adjacent to the current office development at the Zuidas. The new ground-level project will include residential units, offices and services.
The move marks a major breakthrough for the development which was put on ice in 2008 after eight key private investors said the financial and political risks associated with the Zuidas project were too great. The state government is putting up nearly EUR 1 bn while Amsterdam municipality is forking out EUR 200 mln and regional and provincial authorities another EUR 205 mln.
Under the original plan, the entire infrastructure - including the highway and train lines - were to be moved underground but this idea has now been shelved due to the high costs. The price tag of the original plan was put at EUR 4 bn.
Construction of the underground tunnel is scheduled to start in 2015 and is expected to take eight years to complete. Amsterdam municipality is counting on an additional EUR 290 mln in revenues from land sales through 2020.
