chris11256
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I told you so!Wow. Looks like it is worse than thought:
Crossrail set for further £1bn rescue as problems mount
https://www.ft.com/content/a4e79458-fbbe-11e8-ac00-57a2a826423e
Late 2020 now... :/
I told you so!
There's all these billions being bandied about without any explanation about what they might be spent on, that was not in the original project. Whatever is the extra money for that was not previously anticipated.
Link is for subscribers only.
Also covered in https://www.theguardian.com/uk-news/2018/dec/09/crossrail-may-not-even-open-next-year-despite-mooted-extra-1bn?utm_term=RWRpdG9yaWFsX0d1YXJkaWFuVG9kYXlVS19XZWVrZGF5cy0xODEyMTA=&utm_source=esp&utm_medium=Email&utm_campaign=GuardianTodayUK&CMP=GTUK_emailhttp://outline.com/https://www.ft.com/content/a4e79458-fbbe-11e8-ac00-57a2a826423e
(This works for a lot of articles behind paywalls)
Crossrail
could swallow up another £1bn in funding and be delayed beyond 2019, ministers are expected to admit this week.
The flagship construction project to create a new high-capacity train line across London had originally been due to be opened on Sunday by the Queen, but problems with complex new signalling systems delayed testing trains in the central core. Confirmation that the opening was postponed by up to a year was only announced at the end of August.
According to the Financial Times, ministers could announce a further £1bn bailout for the scheme as early as Monday.
Tokyo and OsakaIs there anywhere outside London where the lines on a metro system have names rather than numbers/letters? New York is kind of half-and-half with the infrastructure having names and the services having numbers, but I can't think of anywhere purely with names like London.
There's all these billions being bandied about without any explanation about what they might be spent on, that was not in the original project. Whatever is the extra money for that was not previously anticipated.
Off topic on a more serious subject, but US city streetcar and bus operations were generally (and many still are) given a name taken from the streets they served, and shown on the front in both directions. In this case, Desire is a more obscure street in the suburbs that the streetcar route ran along after coming out from the city along major streets. There's still a Desire bus in New Orleans along the same route.Ever heard of 'A streetcar named Desire'?
Presumably some might be accounted for simply that the project is ongoing for a further 1-2 years longer than planned, so all the costs associated with running a project which should now have been largely dispanded, likewise the costs of having to reschedule activities to the right.
Crossrail is indefinitely delayed and between 1.6 to 2 billion over budget
Yeah the quote from his twitter is directly lifted from the tfl press release.See this tweet from the FT's Chief Political Correspondent who is very close to the story.
https://twitter.com/PickardJE/status/1072121576915697665
Crossrail is indefinitely delayed and between 1.6 to 2 billion over budget
The opening date is indeterminate as of now - Mark Wild of TfL says the Autumn 2019 is not deliverable. The GLA will borrow £1.3bn from the government with access to a further £750m loan facility for contingency purposes. This is what has been tweeted by Tom Edwards of the BBC who is in receipt of an official press release. The GLA is also providing £100m. The loans will be repaid from the Crossrail supplementary levy and Community Infrastructure Levy. This presumably means the continuation of the Crossrail levy for a much longer period than envisaged and whatever it was going to be used for in the short term has been cancelled or postponed. IIRC the Crossrail levy had already been extended with a view to it financing other works including Crossrail 2 planning. The use of CIL monies for loan repayment also means other works / projects will be cancelled. There is no formal word yet on what the related impacts are.
I can't find the full press release online at present - I dare say it'll turn up eventually.
from the tweet linked earlierBREAKING:
"Capital cost impact of the delay to the project announced in August could be in the region of between £1.6bn and £2bn. That includes £300m already contributed by the DfT and TfL in July 2018, leaving an estimated £1.3bn to £1.7bn to complete the project."
Obviously not that close to the story else he would know that the page he has taken a screenshot from is not the page where a properly registered journalist would find press releases; they are found on the page linked to above in post #317.See this tweet from the FT's Chief Political Correspondent who is very close to the story.
https://twitter.com/PickardJE/status/1072121576915697665
From TfL Press Officehttps://tfl-newsroom.prgloo.com/new...med-for-final-stages-of-the-crossrail-project
On mobile so can't summarise but you have summarised the important points already
The Mayor of London, the Greater London Authority (GLA), and Transport for London (TfL) have today [Monday 10th December] confirmed a financing package with the Government to deliver the final stages of the Crossrail project and open the Elizabeth line to passengers as quickly as possible.
Crossrail Ltd announced in August that it expected the Elizabeth line to open through central London in autumn 2019, rather than December 2018. It has now become clear that more work is required than had been envisaged to complete the infrastructure and then commence the extensive testing necessary to ensure the railway opens safely and reliably.
Today the new Chief Executive of Crossrail, Mark Wild, also confirmed that having reviewed the work still required to complete the project, an Autumn 2019 opening date could no longer be committed to at this stage, and his team was working on a robust and deliverable schedule.
Core elements of the infrastructure being delivered by Crossrail Ltd, including the stations and the fit out of the tunnels, are at varying stages of completion and more funding is therefore required to complete it, as well as the extensive safety and reliability testing needed for the new railway systems. The trains procured by TfL are already in operation between Liverpool Street and Shenfield, and Paddington and Hayes & Harlington.
The Mayor asked TfL, on behalf of both joint sponsors, to commission independent reviews into Crossrail Ltd’s financing and governance arrangements. These are being undertaken by KPMG and are nearing completion to ensure the right scrutiny and oversight are in place as the project enters its critical next phase, and that Crossrail Ltd’s financial and schedule projections are robust.
The emerging findings of the KPMG review into Crossrail Ltd’s finances indicate the likely capital cost impact of the delay to the project announced in August could be in the region of between £1.6bn and £2bn. That includes the £300m already contributed by the Department for Transport (DfT) and TfL in July 2018, leaving an estimated £1.3bn to £1.7bn to complete the project.
The Mayor of London and the Government have agreed a financial package to cover this. The Greater London Authority (GLA) will borrow up to £1.3bn from the DfT. The GLA will repay this loan from the existing Business Rate Supplement (BRS) and Mayoral Community Infrastructure Levy (MCIL). The GLA will also provide a £100m cash contribution, taking its total contribution to £1.4bn which it will provide as a grant to TfL for the Crossrail project.
Because the final costs of the Crossrail project are yet to be confirmed, a contingency arrangement has also been agreed between TfL and the Government. This will be in the form of a loan facility from the DfT of up to £750m, should the higher end of the estimate be realised.
This combined financing deal will replace the need for the £350 million interim financing package offered by the Government in October.
The Mayor and the Secretary of State for Transport also today confirmed they have nominated Tony Meggs as the new Chair of Crossrail Ltd, and if ratified by the Crossrail Ltd Board he will replace Sir Terry Morgan who resigned on 5 December.
Tony Meggs, who will step down from his role as CEO of the Infrastructure and Projects Authority (IPA), will oversee the final stages of delivering the Crossrail project. He brings a wealth of experience from his role at the IPA as well as a long career in leadership positions in the private sector. He has nurtured talent at both BP, where he set up their project leadership programme, and more recently at the Government’s Major Projects Leadership Academy.
The Crossrail Ltd Board will be further strengthened with the nomination of former MP Nick Raynsford as Deputy Chair. Nick served as Minister for London on two occasions between 1997 and 2003.
Mayor of London, Sadiq Khan, said: “When Crossrail is complete it will truly transform travel across the capital, with new state-of-the-art trains adding 10 per cent to central London’s rail capacity and boosting the economy by billions of pounds.
“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.”
“I have ordered the release of all Crossrail Board minutes in the last five years to provide transparency to Londoners on their decision making, and working with the DfT, brought in a new leadership team.”
“With London’s population continuing to grow, our priority must be getting this monumental project completed as soon as possible, with Londoners enjoying all the benefits the Elizabeth Line will provide. This agreement means that, working with TfL and the Government, Crossrail’s new leadership can get the job done.”
Mike Brown, London’s Transport Commissioner, said: “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.
“As this happens it’s important not to lose sight of the huge benefits the Elizabeth line will bring. The railway will bring an extra 1.5 million people to within 45 minutes of central London, it will transform accessibility, boost housing and jobs and give better journeys to more than 200 million passengers who are expected to use it every year.”
Mark Wild, Chief Executive, Crossrail Ltd, said: “Since I joined Crossrail Ltd in November I have been reviewing the work still required to complete the core stations and rail infrastructure and begin the critical safety testing. It is evident that there is a huge amount still to do. Stations are in varying stages of completion and we need time to test the complex railway systems. This means that I cannot at this stage commit to an autumn 2019 opening date. My team and I are working to establish a robust and deliverable schedule in order to give Londoners a credible plan to open the railway and provide a safe and reliable service. Once that work is completed we will then be in a position to confirm a new opening date.”
Tony Meggs, said: "It is a privilege to join the Crossrail team. My number one priority will be to work with the Board and Executive team to ensure this project is completed as soon and as safely as possible.
“The UK is renowned for its outstanding engineering and expertise in major projects and I’m confident that we will deliver a world class project that will benefit the country for generations to come.”
The Mayor has written to the National Audit Office (NAO) confirming his full support of its planned investigation into the Crossrail project. The independent KPMG reports into Crossrail Ltd’s finances and governance will be made available to the NAO to help it with its conclusions and they will be published once finalised.
When fully open, the Elizabeth line will increase central London’s rail capacity by 10 per cent, carrying over half a million passengers per day. It will enable TfL to keep pace with London’s growing population, which is set to rise from 8.6 million today to around 10 million by 2030. The new railway is expected to support 180,000 new homes, over 360,000 new jobs and will boost the UK economy by £42 billion.
Contact information
TfL Press Office
Transport for London
0343 222 4141
[email protected]
Notes to editors
The £12.5bn central section is jointly funded by DfT (£5.4bn) and TfL/GLA (£7.1bn). The £2.3bn for the On Network Works is being financed by Network Rail.
- The anticipated cost of the project was previously estimated at £15.9 billion in 2007 and increased to £17.8 billion in 2009, before the Coalition Government took steps to bring down the costs following the June 2010 Comprehensive Spending Review. The revised costs were budgeted at £14.8bn, comprising £12.5bn for central section and £2.3bn for delivery by Network Rail of the Surface sections (the “On Network Works”).
The new trains and depot cost an additional £1.1bn. This is being funded by TfL.
- Crossrail Ltd is responsible for the delivery of the end-to-end railway, including rolling stock, signalling and systems integration, as set out in the Crossrail Delivery Strategy and the Project Delivery Agreement.
- Crossrail Ltd exceeded their portion of the £14.8bn funding envelope earlier this year. In July 2018, DfT confirmed £590m of additional funding was being made available for the project, with £300m to Crossrail Ltd and £290m for Network Rail works. The £300m for Crossrail Ltd was jointly funded between the Government and TfL, with each contributing £150m.
- Both the BRS and MCIL funding streams currently form part of London’s proposal to fund 50% of the Crossrail 2 project. The Mayor remains fully committed to the Crossrail 2 project, and once the Government and the Mayor have agreed a route option for Crossrail 2 and there is a known cost for the scheme, further discussions will be needed around the delivery options in advance of the Government’s Comprehensive Spending Review in 2019.
- The Mayor and TfL remain committed to modernising London’s transport system and details of how any lost revenue will be mitigated will be provided as part of TfL’s annual business planning process.
I haven't heard anything about this for a while. I know they said it was being looked at way back at the beginning of the year, but not seen anything since? The funding shortfall may yet be big enough to push the NtFL project yet further back (and I imagine it has also guaranteed the Jubilee/Northern projects will never see the light of day).As Jo Moore said, It's now a very good day to get out anything we want to bury.
Late, over budget, no deadline they are willing to set. No doubt a lot of the contractors are also ones needed for HS2, who will pay for the stock they is manufactured and going to sit idle? All that shiny new stock - has it been sold off by TfL and leased back yet ?
Overrun isn't enormous in money terms. Though given it's a state funded infrastructure programme with no doubt lots of,political intereference, it's not a massive delay in capital terms, or,it wouldn't be if TFL had the money...... but timewise, it's looking more likely Elizabeth's first trip on it will be in a box.
Well, she is the longest reigning Monarch ever for over 65 years...
Naming four things after her as you've identified is hardly decadence (over 15 years per thing)
Crossrail now delayed to 2020 and to cost another £2bn
Final bill of London’s new rail line could hit £17bn as the mayor demands release of board minutes"
The first thing to concentrate on is getting the Core up and running. That is the new bit, and for many key. Interface with the GEML, GWML and Heathrow can come later, and in the meantime passengers will need to change. How much effort will it take to get Abbey Wood to Paddington running? I have to say, from casual passing of the couple of open air work sites along this section, all work and effort seems to have stopped. I can't believe that EVERY trade is unable to get on and finish their work.