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The government has confirmed an extra £1.7bn in funding for the delayed Crossrail project, as it announced the appointment of a new chairman and deputy chairman.
Transport minister Andrew Jones admitted yesterday that Crossrail could require up to an extra £1.7bn to complete, after the Department for Transport and Transport for London contributed an extra £300m in July this year.
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 £1.3bn to the Greater London Authority (GLA). The GLA will provide an extra £100m 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 £750m in the event that further finance is required, Jones said.
The combined financing deal will replace the need for a £350m interim financing package announced by the DfT in October.
The extra financing means that the overall funding for the project is now £17.6bn. Its original cost was expected to be £14.8bn.
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.
News that Crossrail could be delayed by even longer than originally expected emerged at the weekend.
Jones added: “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.”
The Financial Times suggested that having been due to open on 9 December this year before being pushed back to 2019, Crossrail’s launch may not happen until 2020.
