Unicef warehouse costs surge by €134m

The budget for a new Unicef warehouse in Copenhagen has spiraled by more than €134 million in just 12 months, with the overrun set to be covered by development aid funds.

The total bill for the new Unicef warehouse has increased by over one billion kroner in a year, DR reports.

A new Unicef warehouse is set to be completed in the summer of 2029 in Copenhagen’s Nordhavn and will replace the existing facility.

Around a year ago, the budget estimate for the new warehouse stood at 3.66 billion kroner. But now the total bill for the 30-year lease period is estimated to cost well over 4.7 billion kroner, an increase of 1.04 billion.

The establishment of the warehouse is to be financed through development aid, which is intended to support growth and poverty reduction in developing countries. This is also where the additional 1.04 billion kroner must be found, DR writes.

DR reached out to Unicef and the Ministry of Transport for comment on the price increase.

They refer to the Ministry of Foreign Affairs, which on the question of the price increase refers back to the Ministry of Transport, which then refers to By & Havn.

By & Havn tells DR that the price increase is primarily due to consumption and operations, which are estimated to be more expensive than previously assumed.