TfL and the Department for Transport (DfT) have announced a new Independent Affordability Review into Crossrail 2 to examine ways of making the scheme more affordable. Mike Gerrard, the former managing director of Thames Tideway Tunnel, has been appointed to chair the review, supported by an expert panel, which includes representation from London First.
We see the launch of this review as a potentially significant step forward for Crossrail 2, just as the Montague Review paved the way for Crossrail 1 to proceed over a decade ago.
The review will submit an interim report to the DfT and TfL this summer, outlining options as to how the project could be made more affordable. This would enable government to set out the way forward for Crossrail 2 in the Budget at the end of this year.
London First will shortly present the review with the outline conclusions of our own work on funding and financing options for Crossrail 2. We will also be arranging a briefing session for members to discuss the pros and cons of different options further. In parallel we will continue to publicly make the case for Crossrail 2, and are planning a step up in activity leading up to the autumn to encourage government to commit to moving ahead with the scheme.
The Crossrail 2 Independent Affordability Review has been commissioned jointly by the Department for Transport (DfT), on behalf of Government, and Transport for London (TfL).
The scope of the review covers 3 principal subject areas which are funding, financing and cost and risk. These subject areas will cover issues such as:
Funding – assessing options for additional funding sources beyond those already proposed, the resilience of funding sources and the equity of funding proposals;
Finance – procurement approaches, stress testing financing options and improving clarity of financing policies; and,
Cost and Risk – assessing options to re-phase delivery and capital expenditure, reviewing scheme scope and value engineering opportunities.
The review will submit an interim report to DfT and TfL in summer 2018, and a final report will be submitted at a time to be agreed with TfL and DfT in the light of the recommendations made in the interim report.
The review will be chaired by Mike Gerrard, who will be supported by an Expert Panel of advisors, as follows:
Cost & Risk
Economics & Funding
Business & Funding
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