[ad_1]
Crossrail, London’s long-delayed 19 billion-pound east-west rail link, faces “suspension” without the release of urgent new government funds, the capital’s transport chief warned ministers.
Sky News learned that Andy Byford, London’s transport commissioner, wrote to the permanent secretary of the Department of Transport (DfT) this week, requesting £ 80 million of immediate support to keep the project going.
Byford, who took office in May and has spent much of the past six months struggling to secure funding to keep London’s bus and tube network running during the COVID-19 crisis, told Bernadette Kelly that without the additional financing provided to him, he could waive his responsibility.
“If an agreement is not reached this week, we will have no choice but to suspend the project and seek alternative governance for its eventual completion,” the letter said, according to a Whitehall source who had been briefed on the matter.
“I sincerely hope that we can avoid that Doomsday scenario.”
Crossrail, officially known as the Elizabeth Line, has been plagued by delays and cost overruns, and is already more than three years late.
It is understood that Mr. Byford told Ms. Kelly that Crossrail “could no longer make financial commitments”.
The latest revision of Crossrail’s calendar and budget came in August, when Crossrail’s outgoing board said it would now likely cost £ 18.7 billion, £ 450 million more than the previous estimate, nine months earlier.
Its central section is expected to open during the first half of 2022.
Crossrail is officially known as Elizabeth Line
The 118km line, which will run from Reading and Heathrow Airport through central London to Shenfield and Abbey Wood, is London’s most ambitious and costly transport project in decades.
Considered the largest infrastructure company in Europe, Crossrail is projected to carry 200 million passengers a year and includes ten new stations.
However, it has been plagued with problems, including those related to signage and station setup on Bond Street and Whitechapel.
Social distancing restrictions during the pandemic have also reduced the number of people who can work on construction sites at the same time.
The line’s management was overhauled last year, and over the summer, Byford told the government that he was willing to take responsibility for its delivery on the condition that the government, one of Crossrail’s two co-sponsors, make funds available. enough.
In recent months, Byford has hired two senior executives who worked with him in a previous position in Toronto to improve the chances of delivering Crossrail on time.
Byford’s letter is understood to have highlighted to Kelly the “flight risk” of engineers leaving the project amid continued uncertainty about its progress.
It is also said to have reiterated that TfL’s financing position had been seriously damaged by sharp declines in revenue from congestion fees, advertising and retail activities across its network.
“Therefore, we do not have the financial headroom to provide additional financing unless the government provides financing certainty now by agreeing to the terms we have presented to it,” Byford wrote, according to the Whitehall source.
“These term heads include that the majority of Crossrail’s funding gap is covered by GLA loans, which in our opinion is an extremely good deal for the government given the broader financial impacts of current circumstances and ensures that London continues to pay most of the additional funds needed. “
Political tensions over Crossrail have risen for years, but are exacerbated by the prospect of next year’s mayoral elections.
The plan is billed as the largest infrastructure company in Europe.
TfL recently secured a £ 1.7bn bailout from the government following a bitter public dispute between Sadiq Khan, the mayor of London, and ministers, including Boris Johnson, his predecessor, who said he had ruined the capital’s transport network.
In a statement announcing rescue financing earlier this month, TfL said: “Discussions on financing the additional costs to complete the Crossrail project are not included as part of this financing package, but are being moving in parallel, they remain constructive and are expected to be concluded soon. “
Suggestions of a new crisis in Crossrail’s financing and construction would put off businesses in the capital, many of which are struggling with profound changes in work patterns and consumer behavior brought on by the coronavirus pandemic.
A city hall source said: “TfL has stepped forward and taken full responsibility for the delivery of the Crossrail project and, at the government’s insistence that ‘London pays,’ the current funding proposal will see the vast majority of these costs covered by the Greater London Authority loan.
“This offer was made to ministers months ago and it would mean that London would cover more than its fair share on a project whose financial benefits will overwhelmingly go to the Treasury.”
“It is inconceivable that an agreement cannot be reached on such generous terms for the government.”
A TfL spokesperson said: “TfL, GLA and the government continue to discuss the additional financing needed to complete the Crossrail project.”
A government spokesperson said: “The government remains committed to the efficient completion of the project, in a way that is fair to UK taxpayers, and ensures that London, as Crossrail’s main beneficiary, bears the additional costs.”
“We are working with the Greater London Authority and Transport for London to develop a financing solution to see the completion of Crossrail.”
“It is unfortunate that, unlike other construction projects, the mayor decided to unnecessarily stop work at Crossrail during the pandemic.”
