Network Rail property sell-off to fund upgrade projects

Aaron Morby 9 years ago
Share

Network Rail will be able to stick to most of its planned £38bn spending programme with extra investment generated from the sale of non-core railway assets.

New Network Rail chairman Sir Peter Hendy yesterday published his review into the five-year funding programme to 2019 yesterday.

Network Rail plans to raise £1.8bn from selling some of its property portfolio. The Government has also increased the limit on Network Rail’s government borrowing by a further £700m.

The extra £2.5bn should allow the vast majority of programmes and projects will go ahead for delivery by 2019. The remaining projects will be delivered after 2019 so that Network Rail remains within its funding envelope. As a result, the full programme is now
expected to be delivered over a more realistic timescale.

He said: “The extra investment secures a Railway Upgrade Plan that delivers better stations, faster, more frequent and longer trains and a safer and more reliable railway for millions of passengers and businesses.

“Working closely with the Department for Transport we have ensured that no infrastructure project has been cancelled and the bulk of the investment programme will be delivered by March 2019.

“Some projects will cost more and take longer than originally expected but we will see the job through to deliver better journeys for passengers. ”

Her added: “My review has clearly found that the original plan was unrealistic and undeliverable.

“This new Railway Upgrade Plan is a more robust and deliverable plan but it is not without its own risks and challenges which Network Rail will work tirelessly to address.”

Sir Peter’s 44-page report gives an overview of the different parts of the country and what will be delivered. An eight-week consultation by the DfT on the report’s findings will start in early December.

Consistent with the recommendations in the Bowe report, the rail regulator, DfT and Network Rail will also consider a new approach to funding enhancement programmes to ensure that commitments are not made until the cost and scope of programmes is sufficiently
well developed.

The reports says that Network Rail will also need to recruit enough people on appropriate private sector salary levels so that it can develop the strong senior management capability that is needed to deliver the required improvements.

 

Latest news

Morgan Sindall to build former Willmott Dixon leisure job

New contractor appointed on
14 hours ago

Graham consortium wins £400m Manchester job

Equitix consortium to now work up DBFO plans for University of Manchester’s Fallowfield Campus
10 hours ago

Keltbray looking to sell infrastructure business

£378m turnover rail, energy and highways business up for sale
21 hours ago

Innovative viaduct building method used for first time in UK

HS2 contractors will build nine viaducts in Delta Junction using special cantilevered process
21 hours ago

Unite buys London site to fast-track 444-bed student scheme

£800m to be spent on London development pipeline in next five years
21 hours ago

CITB awards £2.5m of contracts to management consultant

Three outsourced deals in the last year for "project leadership and management consultancy"
21 hours ago

Village centre approved for 6,000-home new town plan

Hampshire's Welborne Garden Village plan has been in the pipeline for two decades.
20 hours ago

£3m fine after cherry picker demolition death

Court rules after tragedy during decommissioning of gas rig
21 hours ago

BAM plans wave of job cuts at UK Construction arm

Co-op Live arena plunges Bam Construction to £19.5m first-half loss
2 days ago

Robot tunnel builder goes into administration

Hypertunnel was hoping to revolutionise how underground structures are built
2 days ago

Wates to build £86m Guildford Council housing scheme

40% of the 248 homes will become council homes under partnership deal
2 days ago

“Scrap CITB” say three quarters of construction firms

Payroll giant Hudson Contract calls for CITB to be absorbed into new Skills England training body
2 days ago

£100m Prestwich Village revival approved

Vinci and Willmott Dixon in chase for Muse-led regeneration scheme
2 days ago

Carbon negative asphalt aggregate trialled on M11

Skanska and Tarmac test CO2 absorbing aggregate material on stretch of Essex motorway
2 days ago

Father and son sentenced over covid construction loan fraud

Bristol builders given suspended jail sentences over bogus Bounce Back Loans
2 days ago

Beck Interiors files administration notice

Supply chain has suffered delayed payments from £139m-turnover luxury fit out specialist
3 days ago

Green light for York Central civil service office hub

£60m office project accelerates York Central goods yard redevelopment
3 days ago

Blenheim House Construction enters administration

Administrators looking at options on present projects
3 days ago

Profits rise at Esh Group with more to come

Contractor confident about year ahead as market conditions move in right direction
3 days ago

Piling specialist Van Elle sees housing orders rise 30%

Mark Cutler says firm on course to deliver 10% annual sales growth
3 days ago

HS2 to spend £100m shutting sites where work never started

Remediation of sites no longer needed for cancelled Phase 2 will take three years
4 days ago

Willmott Dixon wins £61m deal for new Army dog unit

Contractor to revamp Kendrew Barracks in Rutland
3 days ago

Stockport advances 4,000-home Town Centre East plan

Council seeks consultants to steer plan for 280-acre area in the city
3 days ago

ISG sale imminent as buyers set-up UK holding company

South African nutrition entrepreneur and Australian partner primed to take over
4 days ago

CR Construction wins £210m Manchester towers

Construction to start next year on four blocks ranging from nine to 34-storeys
4 days ago

Southern Housing to rationalise supply chain following merger

Firms put on alert for £1.7bn construction framework renewal
4 days ago

Decision delayed on 52-storey Isle of Dogs tower

Hong Kong developer plans 460 flats block next to Millwall Inner Dock
4 days ago

Go-ahead for £850m North London estate rebuild

Flagship Edmonton housing estate redevelopment will deliver 2,000 new homes
4 days ago

Mace lands £184m Oxford Science Park contract

Contractor to build trio of laboratory and office buildings
5 days ago

Worker paralysed in 30ft fall during electricity pylon demolition

Specialist firm fined £240,000 after court hears linesman attached lanyard to a loosened steel section
4 days ago

Contractor services