Network Rail property sell-off to fund upgrade projects

Aaron Morby 7 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

Construction arm drives Mace to record profit

Revenue expected to top £2bn this year despite project delays
34 mins ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
43 mins ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
22 hours ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
23 hours ago

Drones sent flying underground to check sewers

Traditional inspection teams replaced with latest technology
4 hours ago

Plan submitted for 470 Preston flats scheme

Stoneygate Central scheme on Dryden Mill site will rise to 16 storeys
4 hours ago

Graham starts £124m M25 Junction 28

Work on the 36-month Junction 28 upgrade includes constructing a major two-lane loop road
3 hours ago

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
21 hours ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
1 day ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
1 day ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
1 day ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
2 days ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
1 day ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
2 days ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
2 days ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
2 days ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
2 days ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
2 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
5 days ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
2 days ago

Kier wins Sefton net zero £36m school job

Deyes High School in Maghull will consist of 60 classrooms
2 days ago

Giant TBM cutterhead takes road trip to second drive

Balfour Beatty Vinci to drag remaining TBM back through tunnel for second bore
5 days ago

Fast-track 138-project growth plan – full list

Chancellor banks on road projects to lead growth plan recover
5 days ago

Kwarteng backs construction to lead “new era for Britain”

Planning rules to be ripped-up to speed infrastructure work as 38 new Investment Zones created
6 days ago

Green light for next two Manchester NOMA jobs

Work to start early next year on first of two major office buildings
5 days ago

Bouygues struggles to raise profitability

Loss-making contracts dent pre-tax profit at £835,000 from revenue up at £484m
5 days ago

Architect helps staff with £1,000 cost of living cash

P+HS Architects to make one-off payments this autumn
5 days ago

Sisk wins £69m rerouting of landslip-prone A59

Site clearance to start next month at Kex Gill in Yorkshire
6 days ago

Renewal race starts for £800m NEPO framework

Nearly 20 firms face fight to renew places on north east construction panel
5 days ago

Avonside supply chain left holding £17m in unpaid bills

Former bosses revealed as buyers of branches from administrators
6 days ago

Contractor services