41% hike in cost for ECB headquarters

The European Central Bank said the cost of its new Frankfurt headquarters will jump by as much as 41% due to higher prices for construction materials and “a number of unforeseen challenges.”

The 185-meter twin-towered skyscraper will now cost as much as €1.2bn, up to €350m more than the initial price of €850m, the ECB said. The central bank’s relocation to the new premises remains scheduled for 2014, it said. Previously, the ECB said it would move into its new headquarters in early 2014, with construction due for completion at the end of 2013.

The cost blowout comes as the ECB castigates profligate European governments for failing to control their own spending. It’s also another setback for a construction project that was delayed in 2008 when bids exceeded the ECB’s budget in the initial tender process. The building was originally scheduled for completion in 2011.