Latest Rail News

22.08.14

LU announces winner of £500m Northern Line Extension contract

London Underground (LU) has picked Ferrovial Agroman Laing O’Rourke to deliver the £500m contract to design and build the Northern Line Extension from Kennington to Battersea via Nine Elms.

The contract will last for six years and covers the main construction works. The decision follows a competitive procurement process, which started in March 2013 when TfL put out an OJEU notice for expressions of interest. This was then whittled down to four bidders: Balfour Beatty/BAM, Bechtel/Strabag, Costain/Murphy and Ferrovial Agroman Laing O’Rourke.

At the completion of Stage 2, two of the four lowest scoring tenderers were deselected from proceeding to Stage 3. It was understood that Balfour Beatty/BAM and Ferrovial Agroman Laing O’Rourke has made it to the latter stage, but TfL could not confirm this while the process was still underway.

LU has now completed its evaluation and negotiations and following a 10-day standstill period required by European law it will enter into contract with Ferrovial Agroman Laing O’Rourke.

Mike Brown MVO, the managing director of LU, said: “This is an important step in ensuring the delivery of this vital extension which will significantly improve transport links in the area. 

“It is vital that our proposal is delivered cost effectively for our passengers, taxpayers and the local Boroughs and developers who are helping to fund the extension.”

The full cost of the Northern Line Extension scheme is expected to be up to £1bn, which is being funded entirely through developer contributions from Battersea Power Station and other developers and, from 2016, a new Enterprise Zone.

It is hoped the construction of the extension will help kick start regeneration in the Nine Elms area of south London and provide major transport benefits, cutting journey times to the West End and the City to just under 15 minutes. It will also reduce pressure on Vauxhall station, support the existing Northern Line south of Kennington and give wider access to leisure and employment opportunities.  

Tell us what you think – have your say below or email opinion@publicsectorexecutive.com

Comments

Timsburyboy   22/08/2014 at 18:56

Total cost of nearly a billion for a modest extension with two stations.Sounds as though there is a lucky construction company out there.

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