Transport for London (TfL) has confirmed a new financing agreement for the final stages of Crossrail, with the delayed project now expected to cost up to a further £2 billion
The mayor of London, Greater London Authority (GLA), and TfL confirmed they had agreed a financing package with the government, while Crossrail chief executive Mark Wild stated that the autumn 2019 opening date could no longer be committed to.
According to the AJ’s sister publication Construction News, Crossrail has also announced the nomination of a new chairman following the departure of Terry Morgan, with Infrastructure Projects Authority chief executive Tony Meggs lined up for the role.
His appointment will now be ratified by the Crossrail board. Meggs will step down from his current post at the IPA to take on this role.
TfL said the delay was likely to cost in the region of ‘between £1.6 billion and £2 billion’ following a review by KPMG of the costs of the cross-London rail link.
The estimate includes an additional £300 million, which was contributed to the scheme by the Department for Transport (DfT) in July, meaning between £1.3 billion and £1.7 billion will need to be raised to complete the project.
It has been announced that the mayor of London and the government have agreed a financial package to cover this shortfall.
The deal will see the Greater London Authority (GLA) borrow up to £1.3 billion from the DfT.
This will be repaid by the GLA from the existing Business Rate Supplement (BRS) and Mayoral Community Infrastructure Levy (MCIL).
The GLA will also provide a £100 million cash contribution.
TfL said that because the final costs of the Crossrail project were yet to be confirmed, a contingency arrangement had also been agreed between TfL and the government.
This will be in the form of a loan facility from the DfT of up to £750 million, should the higher end of the estimate be realised.
The new package will replace the need for the £350 million interim financing package offered by the government in October.
Bond street station glass fibre reinforced concrete panels lining escalator incline june 2017 273877
Crossrail has also announced that former MP Nick Raynsford had been nominated as deputy chair. Raynsford served as minister for London on two occasions between 1997 and 2003.
The proposed route’s stations have been designed by a pool of architects, including Weston Williamson, Allies and Morrison, BDP, WilkinsonEyre, AHR and Foster + Partners.
Billed as Europe’s largest construction project and eventually boasting 40 stations, the 118km route, to be known as the Elizabeth Line, will run from Berkshire through the capital and out to Essex.
Besides the 10 new central London stations, Crossrail is also revamping 27 surface stations outside of the capital.
Crossrail’s £110 million Bond Street upgrade, designed by John McAslan + Partners - proposed ticket hall on David Street