Crossrail delayed again as costs rise by another £2bn

Grant Prior 4 years ago
Share

Crossrail has bust its budget by another £2bn as further delays to the opening of the project were confirmed.

Another extra financing package worth more than £2bn was agreed on Monday afternoon as Crossrail chiefs admitted they couldn’t guarantee hitting the revised opening date of Autumn 2019.

The network was originally due to open this week after being heralded for years by the previous management team as “on time and on budget.”

Mayor of London Sadiq Khan said: “It has been increasingly clear that the previous Crossrail Ltd leadership painted a far too optimistic picture of the project’s status.”

Crossrail first admitted this summer that the project had bust its original £14.8bn budget by £590m and was running late.

The revised total cost of the project is now £17.6bn.

The latest financing package has been agreed by the Mayor of London, the Greater London Authority and Transport for London.

It comes as an independent review by KPMG into financing and governance on the project nears completion.

It revealed an estimated £1.3bn to £1.7bn shortfall in funding to complete the project plus the need for an extra £750m contingency fund.

New Crossrail chief executive 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.”

It was revealed that “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.”

Mayor Khan said: “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.”

Tony Meggs will become the new Chair of Crossrail Ltd replacing Sir Terry Morgan who resigned last week.

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.

The Crossrail Ltd Board will be further strengthened with the nomination of former MP Nick Raynsford as Deputy Chair.

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.

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.”

Latest news

Tory leadership battle delays bidding for HS2 phase 2a

Prequalification for 5.2bn to £7.2 bn route to Crewe put back to September
37 mins ago

Plan in for Nottingham 967-room student scheme

Vita submits plan for second major purpose built student sh
40 mins ago

Galliford Try gets go-ahead for next A47 dualling job

Early 2023 start for £200m section of A47 between North Tuddenham and Easton in Norfolk
41 mins ago

Greswolde Construction goes under

Solihull contractors ceases trading with 24 jobs lost
2 days ago

Designs revealed for £1bn London Blackfriars tower blocks

Fosters design landmark green office skyscraper and two blocks of flats for Southwark site
3 days ago

Everton stadium job still on budget despite inflation

Club and Laing O'Rourke confident they can still build new ground for £500m
3 days ago

Construction output falls 1.4% halting 7-month growth spurt

Fresh output and orders figures confirm summer construction slowdown
3 days ago

McLaren gets green light for £85m build-to-rent scheme

Construction set to start this autumn on major city centre development
3 days ago

BAM limbers up for £25m Bedworth leisure centre

Pioneering Warwickshire health and fitness hub to start this autumn
3 days ago

Keepmoat to start four-year build in Wigan

Major regeneration scheme to start across four sites
3 days ago

Solihull contractor Greswolde heading for administration

New investors took over business 12 months ago
4 days ago

Duo win £500m canal and river main works deal

Kier and Bentley bag Canal & Rivers Trust's largest ever water engineering works deal
4 days ago

Construction Manager of the Year finalists revealed

70 of the industry's brightest talents: Full list
4 days ago

Willmott Dixon fills new strategic change director role

Vistry Group change director joins private builder to support future growth
4 days ago

Work starts on £42m Oldham Spindles overhaul

Willmott Dixon signs off £42m deal to create new market, offices and event space
4 days ago

Firms wanted for Telford & Wrekin £1.6bn building works DPS

Call up for dynamic purchasing system covering building and refurbishment work
4 days ago

Kier pulls off contracts league double in July

Contractor bags highest value of new work and tops rolling 12 months ranking
5 days ago

Hinkley Point C giant water intakes craned onto seabed

Video: contractors complete one of the world’s most complex marine engineering projects
5 days ago

Taziker revenue jumps 30% to record £73m

Multi-disciplinary engineering specialist boosts headcount to 366 staff
5 days ago

Consultant buys scaffolding contractor

RSK Group makes MG Scaffolding its latest acquisition
5 days ago

M&E specialist gears up for £16m Aston Martin package

Major package award on McLaren Silverstone site
5 days ago

Plans in for Brentford 110-flat canalside scheme

Makers’ Yard mixed commercial and residential use scheme
5 days ago

WSP to buy consultant RPS Group for £591m

5,000 staff at Oxfordshire based firm to join WSP
6 days ago

Countryside puts offsite factory up for sale

Offers invited for Bardon plant which is less than a year old
6 days ago

M&E specialist Spie UK arm returns to profit

French parent group launches a strategic review of UK operations after performance stabilises
6 days ago

Site boss fined for locking out safety inspectors

Police called to enter site before fire fighters rescue workers stranded on roof
6 days ago

Rebid starts for £200m M5 junction job

Cost inflation forces retender for £200m junction 10 rebuild near Cheltenham
6 days ago

New Downing Construction boss named

Andy Thomas takes top job as Ian Orton steps back after 24 years
6 days ago

Plans in for 600 homes at London Aylesbury estate

Notting Hill Genesis aims to start work next year on phase 2 of Southwark estate rebuild
6 days ago

Tide gets green light for UK’s tallest modular tower

Volumetric specialist to build 48-storey student skyscraper at Canary Wharf
1 week ago

Contractor services