26.06.15
HS2 delivery ‘in doubt’ – Major Projects Authority
The successful delivery of HS2 is in doubt as the government’s Major Projects Authority (MPA) rates the scheme as amber/red in its latest assessment.
The annual report from the MPA for 2014-15 detailed the costs and progress of all major government projects and rated them using a traffic light scheme. It found that 112 major projects in 2014 were in danger of failing and only 76 were considered likely to succeed.
In its 2014 assessment HS2 was rated amber/red, which the MPA defines as: “Successful delivery of the project/programme is in doubt with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible.”
The government has also published reports from the MPA from 2011 and 2012 that are critical of HS2 after losing an FOI request battle to prevent their publication.
Both reports also rate the project as amber/red and the 2012 report listed ‘significant risks’ including a “coordinated campaign by concerned stakeholders that prevents access for essential survey activities” that could delay the Hybrid Bill or cause information gaps which would delay passage of the Royal Assent.
The MPA was also concerned about establishing an “appropriate understanding of the resolution of the affordability challenge” between the Department of Transport and the Treasury, and taking the project to deliver phase with effective governance.
Commenting on the governance arrangements, the review team said: “There is a risk that insufficient delegations to HS2 Ltd may lead to micromanagement, additional costs and delay. In addition, lack of clarity of reserved matters for DfT risk unsatisfactory outcomes for the Client.”
The 2011 report expressed concerns over the readiness of the project to move into the development phase and the timetable through to Royal Assent in 2015, describing it as “extremely challenging”.
It stated: “The Review Team has significant concerns over the readiness of the project to move into the development phase, subject to a positive decision, in particular the immaturity of the governance and management arrangements necessary for the development phase.”
The latest MPA report said its forecast lifetime costs remained steady at around £42.6bn in 2014.
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