HS2

10.12.18

Crossrail given £1.4bn bailout as launch date pushed back once again

Crossrail has suffered further delays to its schedule beyond the autumn of 2019 and London transport bosses have today announced a £1.4bn bailout of the flagship project – even worse than first estimates – in what represents yet another blow for the troubled scheme.

A day after the £15.4bn project was due to open according to its original schedule, TfL confirmed a new financing agreement for the Elizabeth Line which will see the Greater London Authority (GLA) borrow up to £1.3bn from the DfT.

On top of a £100m contribution from GLA, a £750m loan will be given to Crossrail by the DfT as a contingency, replacing the original £350m package offered by the government in October. An investigation has found, however, that between £1.6bn and £2bn is needed to see off the project.

Crossrail’s new CEO, Mark Wild, has today announced that core elements of the infrastructure including stations and tunnels are yet to be completed and that, following a review, it has become clear that the already-delayed launch date of autumn 2019 cannot be committed to at this stage.

It has also been announced that Tony Meggs has been nominated by the mayor of London and transport secretary as the new chair of Crossrail. He will replace Sir Terry Morgan if ratified.

Meggs will step down from his role as CEO of the Infrastructure and Projects Authority and oversee the final stages of delivering the Crossrail project, along with the help of Nick Raynsford MP, who has been nominated as deputy chair.

A review by KPMG, which was appointed to investigate Crossrail’s spiralling costs and the delays, indicated that the capital impact of the August delay will be in the region of £1.6bn and £2bn, which it now seems London will be picking up the bill for.

Today’s announcement means the final bill for the Elizabeth Line could reach £17.6bn, and this is now the third rescue plan announced this year.

Sadiq Khan, who has been at the centre of the delay’s controversy, commented: “I haven’t hidden my anger and frustration about the Crossrail project being delayed. This has a knock-on consequence of significant additional cost to the project.  It has been increasingly clear that the previous Crossrail Ltd leadership painted a far too optimistic picture of the project’s status.”

The mayor added that he is confident that, working with TfL and the government, the new leadership “can get the job done.”

Mike Brown, London’s transport commissioner, also noted: “Crossrail Ltd’s announcement of the delay to the Elizabeth line is extremely disappointing and, only now, is the scale of what is yet to be completed becoming clear.

“The confirmation of this funding agreement will now allow Crossrail Ltd and its new leadership to focus on finishing the remaining construction work on the stations and tunnels and then completing the vital safety testing in order to open the railway for passengers as quickly as possible.”

Comments

There are no comments. Why not be the first?

Add your comment

 

related

rail technology magazine tv

more videos >

latest rail news

Overhead electric line overhaul to improve passenger journeys

03/08/2020Overhead electric line overhaul to improve passenger journeys

Passenger and freight journeys are set to be made more reliable in Lancashire and Cumbria as part of a £3.4m investment into the overhead 2... more >
Rail passengers benefit from £40m Stevenage station platform

03/08/2020Rail passengers benefit from £40m Stevenage station platform

A new £40m platform and track improvement made at Stevenage station has seen significant improvements to the frequency and reliability of s... more >
Network Rail partners with Cycling UK for new initiative

03/08/2020Network Rail partners with Cycling UK for new initiative

Network Rail and Cycling UK have launched a partnership today (Aug 3) in light of a fifth of Brits saying they would consider cycling to work. ... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

29/06/2020On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

Following an independent audit, Sulzer’s Nottingham Service Centre has been accepted as part of the rail industry supplier approval scheme (RISAS). The accreditation reinforces the high-quality standards that are maintained by Sulzer’s network of independent repair facilities across the UK and further afield in its global network. ... more >
read more blog posts from 'the sleeper' >

comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >
Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

02/07/2019Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

Smart electrification is the way to boost clean energy resources, argues Leo Murray, director at 10:10 Climate Action. Contractors are clear... more >
Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

02/07/2019Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

The TCR Midlands conference is only days away and tickets are going fast for the sector event of the year at the Vox Conference Centre in Birming... more >

rail industry focus

View all News

interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he wo... more >