Crossrail funding hits £17.6Bn confirmed by the government

Crossrail funding hits £17.6Bn confirmed by the government

An extra £1.7 billion in funding has been confirmed by the government for the delayed Crossrail project, as it also announced the appointment of a new chairman and deputy chairman. After the Department for Transport and Transport for London contributed an extra £300 million in July this year, transport minister Andrew Jones admitted a further £1.7 billion would be needed for the project to reach completion.

He said the government, Mayor of London and TfL have agreed a final package to cover the cost. The Department for Transport will provide a loan of up to £1.3 billion to the Greater London Authority (GLA), while  the GLA will provide an extra £100 million in cash.

As the final costs of the project are yet to be confirmed, a contingency arrangement has also been agreed between TfL and the Department for Transport. The DfT will loan TfL up to £750 million in the event that further finance is required, Jones said. The combined financing deal will replace the need for a £350 million interim financing package announced by the DfT in October.

With all the extra financing the overall funding for the project reached £17.6 billion compared with its original cost of £14.8 billion.

Meanwhile, Jones confirmed the appointment of Tony Meggs, formerly chief executive of the Infrastructure and Projects Authority as chairman of Crossrail. Former construction minister Nick Raynsford has been confirmed as deputy chief executive.

“Crossrail Ltd appointed Mark Wild as CEO on 19 November 2018. Mark is now conducting an extensive review of the remainder of the programme and will provide clarity in the New Year on the opening date of future phases. Crossrail Ltd are working to establish a robust and deliverable schedule to open a safe and reliable railway. This will also provide greater clarity on the level of additional funding required,” added Jones.

News that Crossrail could be delayed by even longer than originally expected emerged at the weekend when the Financial Times suggested that due to all the delays that have been happening Crossrail’s launch may not happen until 2020.

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