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Posts Tagged ‘Crossrail 1

The fifteen billion pound railway?

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BBC television’s series about the construction of London’s Crossrail 1 was called The Fifteen Billion Pound Railway. But how accurate is that figure?

As always, getting precise figures for the current cost of Crossrail is not possible. According to Crossrail’s Keith Berryman (in Rail Magazine, 14 Jan 2009), “the £15.9bn cost, based on Q1 2007 prices, incorporates an escalation factor until 2017 and a substantial contingency. The basic construction price is about £8bn.”

So, what happened to the “substantial contingency”? Where has it gone?

Daily Mail price conversion of £15.9 billion (2007) to 2015 levels

Daily Mail price conversion of £15.9 billion (2007) to 2015 levels

Applying the Daily Mail converter to a 2007 budget of £15.9 billion gives a year 2015 equivalent of £20.55 billion (construction price increases have tended to outpace those in the wider economy, so the Daily Mail conversion may underestimate the cost at current prices).

Written by beleben

June 18, 2015 at 8:21 pm

Posted in London

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Crossrail Limited does not hold information relating to “UK spend”

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A seriously misleading tweet from the Department for Transport

A seriously misleading tweet from the Department for Transport

Crossrail Ltd (CRL) — the company overseeing construction of London’s Crossrail 1 railway — records expenditure ‘by contract and project’, rather than worksite and category, a freedom of information request has established. However, ‘details of budgets and current expenditure are considered by CRL to be commercially sensitive and hence exempt from disclosure as set out in Section 43(2) of the Freedom of Information Act’. Furthermore, the company does not hold information relating to “UK spend”, so claims about 95% of the contracts being awarded to ‘UK firms’ and suchlike, can be classed as bunkum.

[Crossrail Ltd, December 2014]

[…] This exemption has been applied since the release of this information is likely to prejudice the commercial interests of CRL in negotiations with contractors during the life of the contracts, and also affect the commercial position of the contractors with regard to their key sub-contractors.

The use of this exemption is subject to an assessment of the public interest in relation to the disclosure of the information concerned. In this instance, factors in favour of disclosure, such as the general public interest in transparency and openness are outweighed by CRL’s obligation to ensure that it obtains the best possible value when spending public money.

The total funding envelope for the Crossrail programme is £14.8bn. Total expenditure incurred (including committed land and property spend not yet paid out) by CRL in relation to the construction of Crossrail to the end of period 8 – 22 July 2008 to 8 November 2014 (excluding recoverable VAT on Land and Property purchases) is £6,798m. This amount updates the figure given in the Annual Crossrail Update to Parliament on Crossrail funding and expenditure made by the Secretary of State of the Department for Transport published in July this year.

CRL does not hold information relating to “UK spend”. We hold information relating to the location of our tier 1 contractors, however we do not hold records of payments between businesses in our supply chain beyond the first tier.

Misinformation in 'Rail' Magazine

Misinformation in ‘Rail’ Magazine

Written by beleben

December 12, 2014 at 4:20 pm