Report Department for Transport€¦ · trains and main depot. 19% Percentage increase in the...

HC 1924 SESSION 2017–2019 28 FEBRUARY 2019

A picture of the National Audit Office logo

Reportby the Comptroller and Auditor General

Department for Transport

A memorandum on the Crossrail programme

Our vision is to help the nation spend wisely.

Our public audit perspective helps Parliament hold government to account and improve public services.

The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the accounts of all government departments and many other public sector bodies. He has statutory authority to examine and report to Parliament on whether departments and the bodies they fund, nationally and locally, have used their resources efficiently, effectively, and with economy. The C&AG does this through a range of outputs including value-for-money reports on matters of public interest; investigations to establish the underlying facts in circumstances where concerns have been raised by others or observed through our wider work; landscape reviews to aid transparency; and good-practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of £741 million in 2017.

HC 1924 | £10.00

Report by the Comptroller and Auditor General

Ordered by the House of Commons to be printed on 25 February 2019

This report has been prepared under Section 6 of the National Audit Act 1983 for presentation to the House of Commons in accordance with Section 9 of the Act

Sir Amyas Morse KCB Comptroller and Auditor General National Audit Office

22 February 2019

Department for Transport

A memorandum on the Crossrail programme

© National Audit Office 2019

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007232 02/19 NAO

This memorandum sets out background information about the Crossrail programme and the current position.

Contents

What is Crossrail? 7

Introduction to this guide 4 Key facts 5 Summary 6

Why are the government and TfL building Crossrail? 10

Who is paying for Crossrail? 13

Who is delivering Crossrail? 15

How is Crossrail being delivered? 21

When will Crossrail be complete and open? 24

Introduction

History of the Crossrail project

Elizabeth line services

Increasing capacity and reducing congestion

Improving connectivity

Government and TfL projections of the benefits of Crossrail

The governance and delivery structure

How governance and delivery works

Crossrail Ltd

Crossrail Ltd, previous Board

Issues identified with governance and information on the programme

Events leading to the announcement of delays

Progress against the timetable for opening the railway

Remaining work

The main component parts of the programme

Integration of a complex programme

Crossrail funding and financing model

How the funding position has changed

Design & Production by NAO External Relations | DP Ref: 007232-001

The National Audit Office study team consisted of: Hedley Ayres, Lee Nicholson, Kristian Barrett and Riaz Rahman, under the direction of Lee-Anne Murray.

This report can be found on the National Audit Office website at www.nao.org.uk

For further information about the National Audit Office please contact:

National Audit Office – Press Office 157–197 Buckingham Palace Road Victoria, London, SW1W 9SP

Tel: 020 7798 7400

Enquiries: www.nao.org.uk/contact-us Website: www.nao.org.uk Twitter: @NAOorguk

3

Previous examinations of Crossrail by PAC and the NAO 27

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A memorandum on the Crossrail programme Introduction to this guide 4

What is Crossrail?Introduction to this guide Key facts Summary

Why are the government and TfL building Crossrail?

Who is paying for Crossrail?

Who is delivering Crossrail?

How is Crossrail being delivered?

When will Crossrail be complete and open?

Previous examinations of Crossrail by PAC and the NAO

Introduction to this guide

We have produced this memorandum on the Crossrail programme to support Parliamentary scrutiny of Crossrail in light of events that transpired during the second half of 2018. From July 2018, it became clear that programme costs were increasing significantly. In August 2018 Crossrail Ltd announced that it would not meet planned opening dates for the railway. In November 2018, the Chair of the Committee of Public Accounts wrote to the Comptroller and Auditor General and asked him to examine the reasons for cost and schedule increases.

The final cost remains uncertain. There is currently no date for when the railway will be fully operational.

This Memorandum sets out the background to the Crossrail programme, including why and how it is being built, and who is building and paying for it. It also includes public statements about when the Department for Transport (the Department), Transport for London (TfL) and Crossrail Ltd expect services to operate, how much they currently estimate the programme will cost, and what funding has been committed to the programme. It is based mainly on publicly available information.

The National Audit Office (NAO) will be publishing a value-for-money study on the programme in Spring 2019. The NAO’s report will examine:

• the underlying causes of the delays and cost increases;

• the reasons why the programme unravelled in 2018, and why issues emerged so quickly and with such a significant cost increase; and

• the actions sponsors and Crossrail Ltd have taken to get the programme on track, and our assessment of whether these actions are likely to be sufficient.

Depending on the progress of the programme by the time we report, it will also set out the expected forecast cost and delivery schedule, and assess the programme’s remaining future risks.

A memorandum on the Crossrail programme Key facts 5








December 2018

Original date when the Crossrail sponsors and Crossrail Ltd expected to start running services on the central section of the railway.

£2.05 billion

Value of loans from HM Government, including £1.3 billion to the Greater London Authority and £750 million as contingency to TfL to cover the increased cost of Crossrail, as announced in December 2018. The Greater London Authority has also committed a cash contribution of £100 million.

£600 million

Current assumption of revenue losses to TfL between 2019-20 and 2023-24, as a result of delays to the opening of Crossrail services.

118 kilometres

Approximate length of the line between Heathrow and Reading in the west and Shenfield and Abbey Wood in the east, on which Elizabeth line services will operate once the Crossrail programme is complete.

26 miles/42 kilometres

Approximate length of new tunnels in the central section of the railway.

10

New stations being built as part of the Crossrail programme.

Unknown

Revised opening date for Crossrail.

£14.8 billion

Funding package, including contingency, agreed in the 2010 Spending Review to cover the delivery of the Crossrail programme, excluding trains and main depot.

19%

Percentage increase in the funding available for the Crossrail programme.

£17.6 billion

Current total funding package for Crossrail, including contingency, but excluding trains and depots following government announcements in July and December 2018.

Key facts

A memorandum on the Crossrail programme Summary 6








Summary

Crossrail is a complex programme to provide new rail services between Reading and Heathrow west of London and Shenfi eld and Abbey Wood. It includes a new underground railway beneath central London.

It remains unclear when the central section of the railway will open, with Crossrail Ltd having missed its target to open this section in December 2018. Crossrail Ltd does not yet have a fi rm estimate of the revised cost to complete the programme.

The Department and TfL are sponsoring and funding Crossrail jointly. The sponsors expect the railway to reduce congestion, increase capacity, reduce journey times and enable economic growth.

During 2018 sponsors and Crossrail Ltd made a series of announcements about signifi cant cost increases and delays to the programme.

Crossrail Ltd is responsible for delivering the programme, from building the line and stations, through to integrating systems and providing an operational railway. Crossrail Ltd is a company wholly owned by TfL with an independent board.

A memorandum on the Crossrail programme What is Crossrail? 7








Introduction History of the Crossrail project


Introduction

Crossrail is a major programme to run new, direct rail services between Reading and all passenger terminals of Heathrow Airport at the western ends of the railway, through a new underground section beneath central London to Shenfield in Essex and Abbey Wood in south-east London at the eastern ends.

When complete, the railway will be around 118km long, with around 26 miles (42 kilometres) of new tunnels in the central section between Paddington and Canary Wharf, and at Woolwich. There are 10 new stations being built as part of the Crossrail programme, and a further 31 are being improved.

Once Crossrail is open, it will become part of TfL’s rail and underground network, and will be known as the Elizabeth line.

READING

HILLINGDON

EALING

HA

MM

ERSM

ITH &

FULH

AM

WINDSOR & MAIDENHEAD

SLOUGH

SOUTH BUCKSISLINGTON

CAMDEN

WESTMINSTER

KENSIN

GTON &

CHELSEA

BEXLEY

BRENTWOOD

HAVERING

BARKING & DAGENHAM

REDBRIDGE

GREENWICH

NEWHAM

TOWER HAMLETS

CITY OF LONDON

WOKINGHAM

T1,2,3

T4

T5

SouthallHanwell

West Ealing

Ealing BroadwayWest

Drayton Hayes & Harlington Acton

Main LineTottenham Court Road Canary

WharfAbbey Wood

Custom House

Bond Street

Forest Gate

Manor Park

Seven Kings

Paddington

Farringdon

Iver

Heathrow

LangleySlough

BurnhamTaplow

Maidenhead

Reading

Twyford

Whitechapel

Woolwich

IlfordGoodmayes

Chadwell Heath Gidea

Park

Harold Wood

Romford

Brentwood

Shenfield

Maryland

Stratford

Liverpool Street

Surface line

Tunnel

Portal (tunnel entrance and exit)

DistrictOverground

Hammersmith& City

CentralJubilee

Hammersmith& City

MetropolitanCircle

LutonGatwick

DLRCentralNorthern

DistrictCentral

OvergroundDLRJubileeCentral

Hammersmith& CityBakerloo

Circle

District NorthernCentral

Stansted

Hammersmith& City

Southend

MetropolitanCircle

PiccadillyHeathrow

DLRDLR

DLRJubilee

Surface line

Tunnel

Portal (tunnel entrance and exit)

National Rail connection

Airport connection

Airports not on the Crossrail route - to travel to these airports passengers will need to travel on other connecting rail services. Step-free travel is possible but assistance will be required to get on and o� some trains. Travel from Luton Airport Parkway Station to Luton Airport is via an accessible bus.

Route Map Showing rail and air connectionsRoute Map

Source: Crossrail Limited, Regional Map. Available at: www.crossrail.co.uk/route/maps/

Figure 1 Crossrail regional map











History of the Crossrail project

Crossrail has a long history. In 1974 and 1980, feasibility studies concluded that it would be too costly a scheme to build and in 1994 a private members bill to build Crossrail was defeated. The current incarnation of Crossrail goes back to 2002, when the newly formed Cross London Rail Links (which became Crossrail Ltd in 2009) assessed the feasibility of the scheme again, after the Strategic Rail Authority

recommended that new rail links should be built across London to relieve existing and forecast overcrowding and to reduce congestion on the rail network between east and west. Legislation required to build the railway gained Royal Assent in 2008 in the form of the Crossrail Act. Construction started in 2009 on the first Crossrail site, Canary Wharf station.

Figure 2 Crossrail development timeline

1974 and 1980 2000 20102007 20141991 2001 20112008 20151994 2005 20122009 2017

1991

First Crossrail Bill (private) introduced

1994

Crossrail Bill defeated in the Commons

2002

Cross London Rail Links established to assess feasibility and develop the business case for Crossrail

2012

Tunnelling starts

Jul 2014

TfL awards contracts to operate Crossrail services to MTR

May 2015

Tunnelling completes and TfL takes over services between Shenfield and Liverpool Street

2005

Crossrail Bill introduced

2008

Crossrail Bill gains Royal Assent

2009

Cross London Rail links renamed ‘Crossrail Limited’. In May, work starts on Canary Wharf station

2011

Crossrail Limited passes ‘Review Point 4’ to gain autonomy to deliver the programme. This was the final point at which sponsors could pull out

Source: National Audit Offi ce analysis of departmental information

1974 and 1980

Two feasibility studies (1974 and 1980) conclude that Crossrail would be too costly a project to approve. The proposed scheme becomes known as ‘Crossrail’ for the first time

2000

Government commissions the Strategic Rail Authority to examine options for relieving congestion on London’s rail network. The Authority recommends that the Crossrail programme be developed

2007

The Department and TfL agree a funding package of £15.9 billion for Crossrail, including £2.3 billion financed by Network Rail

2010

As part of the 2010 Spending Review, government and TfL agreed to reduce the funding package by more than £1 billion, from £15.9 billion to £14.8 billion

Jun 2017

Services between Shenfield and Liverpool Street commence, although a month later than planned

Feb 2014

TfL awards contracts to design, build and maintain a fleet of trains












When Crossrail is complete and fully open, passengers will have access to a large number of new services for travelling between east and west. Figure 3 summarises the promised peak-time service frequency.

Figure 3Planned Elizabeth line services at peak times

Section of the railway Examples of service frequency at peak times

Central section 24 trains an hour between Paddington and Whitechapel stations

Eastern section 12 trains an hour between Shenfi eld and central London; an additional four trains an hour will run between Gidea Park and Liverpool Street main-line station

South-eastern section 12 trains an hour between Abbey Wood and Canary Wharf, and central London

Western section 6 trains an hour between Maidenhead and central London

4 trains an hour between Reading and central London

4 trains an hour between Heathrow Terminals 2, 3 and 4 and central London

2 trains an hour between Heathrow Terminals 2, 3 and 5 and central London

Source: Crossrail Ltd

A memorandum on the Crossrail programme Why are the government and TfL building Crossrail? 10









Improving connectivity Government and TfL projections of the benefits of Crossrail


One of the main objectives of Crossrail – and central to the business case for the programme – is the need to increase capacity on the underground and main-line rail network in London to meet future demand, thereby reducing congestion on some of the most overcrowded lines on the London Underground network. According to Crossrail Ltd’s website, Crossrail will increase capacity on the rail network in central London by around 10%.

In 2010, the Crossrail business case forecast that London’s population would continue to grow, with nearly 1.3 million additional people living in London and 750,000 new jobs being created between 2010 and 2031, and that annual growth in demand for peak-time public transport would increase to around 1.5% a year. At that time, Crossrail Ltd estimated that Crossrail would carry around 200,000 people each day during the morning peak.

Figures 4a and 4b shown on the right, which are taken from the 2010 business case, show that Crossrail Ltd was forecasting that the introduction of Crossrail services to the network could result in peak-time reductions in overcrowding of between 20% and 60% on the Bakerloo, Central, District and Jubilee lines of the London Underground as well as reductions in overcrowding on the national rail network.

Source: Crossrail business case, July 2010. Available at: https://webarchive.nationalarchives.gov.uk/20120215100250/http:/assets.dft.gov.uk/publications/crossrail-business-case-update/crossrail-business-case-update-summary-report-july-2011.pdf

Figure 4aLondon Underground crowding changes with Crossrail 2026

Source: Crossrail business case, July 2010. Available at: https://webarchive.nationalarchives.gov.uk/20120215100250/http:/assets.dft.gov.uk/publications/crossrail-business-case-update/crossrail-business-case-update-summary-report-july-2011.pdf

Figure 4bRail crowding changes with Crossrail 2026

Crossrail business case Summary report

The transport case for Crossrail6

Figure ETube Crowding Changes with Crossrail 2026

Figure FRail Crowding Changes with Crossrail 2026

Over 10%

0% to 10%0% to -10%-10% to -30%

Over -30%

2026 LUL crowding di�erence

This schematic map does not include all details of the network

Woolwich Arsenal

Amersham

Watford

Moor Park

Walthamstow Central

Harrow & Wealdstone

South Ruislip

West Ruislip

Stanmore

Edgware High Barnet CockfostersEpping

UpminsterNotting Hill Gate

North ActonPaddington

Finsbury Park

King's Cross

CanaryWharf

LiverpoolStreet

OxfordCircus

Charing Cross

Holborn

Euston

Morden

Brixton

Stratford

LondonBridge

Blackfriars

Bank

Waterloo

Stockwell

VictoriaEarl’sCourt

Hammersmith

Willesden Jct

Lewisham

Beckton

Ealing Broadway

Wimbledon

Richmond

Heathrow

Uxbridge

Barking

Green Park

Mill Hill East

Woodford

Over 10%

0% to 10%0% to -10%-10% to -30%

Over -30%

2026 National Rail crowding di�erence

This schematic map does not include all details of the network











Improving connectivity

Improving connectivity was one of Crossrail’s main objectives. When the railway is fully open and all services are running – the timing for which is not yet clear – Crossrail will provide a direct link between London’s existing major employment centres, including Heathrow, the City of Westminster and the West End (Paddington and Bond Street), the City of London (Farringdon and Liverpool Street) and Canary Wharf. Crossrail has interchanges with most London Underground lines, the Docklands Light Railway, and the London Overground, as well as main-line stations including Stratford, Woolwich, Paddington and a number of stations on the Great Western and Great Eastern main lines.

§ Check before you travel§ Services to/from some stations are subject to variation. Please search ‘TfL stations’ for full details.

Riverboat services

Trams

Emirates Air Line

Metropolitan

Victoria

Circle

Central

Bakerloo

DLR

Piccadilly

Waterloo & City

Jubilee

Hammersmith & City

Northern

District

District open at weekendsand on some public holidays

Emirates Air Line

London Overground

Victoria Coach Station

Transport for London This diagram is an evolution of the original design conceived in 1931 by Harry Beck · DRAFT based on July 2017 specifications

National Rail

Airport

Interchange stations

Step-free access from street to platform

Step-free access from street to train

Elizabeth

The Elizabeth line - December 2019

River Thames

Regent’s Park

GoodgeStreet

Bayswater

Warren Street

Aldgate

RussellSquare

High Street Kensington

Old Street

Green Park

BakerStreet

NottingHill Gate

Victoria

Mansion House

Temple

TowerHill

Westminster

PiccadillyCircus

CharingCross

Holborn

Tower Gateway

Monument

Leicester SquareSt. Paul’s

Hyde Park Corner

Knightsbridge

Angel

Queensway

Marble Arch

SouthKensington

SloaneSquare

Covent Garden

Great PortlandStreet

BankChancery Lane

LancasterGateHolland

Park

Cannon Street

Fenchurch Street

GloucesterRoad St. James’s

Park

EustonSquare

EdgwareRoad

EdgwareRoad

Embankment

Blackfriars

King’s CrossSt. Pancras

Marylebone

Watford High Street

Watford Junction

Bushey

Carpenders Park

Hatch End

North Wembley

South Kenton

Kenton

Wembley Central

Kensal Green

Queen’s Park

Stonebridge Park

Bethnal Green

Cambridge Heath

London Fields

Harlesden

Willesden Junction

Headstone Lane

Harrow &Wealdstone

Kilburn Park

Warwick Avenue

Maida Vale

Euston

New Cross Gate

Imperial Wharf

West Croydon

ClaphamJunction

Crystal Palace Norwood Junction

Sydenham

Forest Hill

Anerley

Penge West

Honor Oak Park

Brockley

Wapping

New Cross

Queens RoadPeckham

Peckham Rye

Denmark Hill

Surrey Quays

WandsworthRoad

Rotherhithe

ShoreditchHigh Street

Haggerston

Hoxton

Shepherd’sBush

Shadwell

CanadaWater

Fulham Broadway

West Brompton

Parsons Green

Putney Bridge

East Putney

Southfields

Wimbledon Park

Wimbledon

Kensington(Olympia)

AldgateEast

BethnalGreen Mile End

Dalston Kingsland

HackneyWick

Homerton

HackneyCentral

Rectory Road

HackneyDowns

Theydon Bois

Epping

Debden

Loughton

Buckhurst Hill

Leytonstone

Wood StreetBruce Grove

White Hart Lane

Silver Street

Edmonton Green

Southbury

Turkey Street

Theobalds Grove

CheshuntEnfield Town

StamfordHill

Bush Hill Park

Highams Park

Chingford

Leyton

Woodford

South Woodford

Snaresbrook

Hainault

Fairlop

Barkingside

Newbury Park

RodingValley

GrangeHill

Chigwell

Redbridge

GantsHill

Wanstead

Dalston Junction

Canonbury

Stepney Green

SevenSisters

Highbury &Islington

TottenhamHale

WalthamstowCentral

Clapton

St. James Street

Stoke Newington

Dagenham East

Dagenham Heathway

Becontree

Upney

Upminster

Upminster Bridge

Hornchurch

Elm Park

HarringayGreenLanes

WansteadPark

LeytonstoneHigh Road

LeytonMidland Road

Emerson Park

South Tottenham

Blackhorse Road

Barking

East Ham

Plaistow

Upton Park

Upper Holloway

Crouch Hill

GospelOak

BowChurch

West Ham

BowRoad

Bromley-by-Bow

Island Gardens

Greenwich

Deptford Bridge

South Quay

Crossharbour

Mudchute

Heron Quays

West India Quay

Elverson Road

Devons Road

Langdon Park

All Saints

Canary Wharf

Cutty Sark for Maritime Greenwich

Lewisham

EmiratesGreenwichPeninsula

Westferry Blackwall

CanningTown

PoplarLimehouse EastIndia

StratfordInternational

Star Lane

NorthGreenwich

Oakwood

Cockfosters

Southgate

Arnos Grove

Bounds Green

Turnpike Lane

Wood Green

Manor House

FinsburyPark

Arsenal

KentishTown West

Holloway Road

Caledonian Road

Mill Hill East

Edgware

Burnt Oak

Colindale

Hendon Central

Brent Cross

Golders Green

Hampstead

Belsize Park

Chalk Farm

Camden Town

High Barnet

Totteridge & Whetstone

Woodside Park

West Finchley

Finchley Central

East Finchley

Highgate

Archway

Tufnell Park

Kentish Town

MorningtonCrescent

CamdenRoad

CaledonianRoad &

Barnsbury

Amersham

Chorleywood

Rickmansworth

Chalfont &Latimer

Chesham

Moor Park

Croxley

Watford

Northwood

Northwood Hills

Pinner

North Harrow

Harrow-on-the-Hill

Northwick Park

Preston Road

Wembley ParkRayners Lane

Stanmore

Canons Park

Queensbury

Kingsbury

Neasden

Dollis Hill

Willesden Green

Swiss Cottage

Kilburn

West Hampstead

Finchley Road

WestHarrow

IckenhamUxbridge

Hillingdon Ruislip

Ruislip Manor

Eastcote

St. John’s Wood

Northfields

Boston Manor

SouthEaling

Osterley

Hounslow Central

Hounslow East

Hounslow West

Hatton Cross

Perivale

Hanger Lane

Ruislip Gardens

South Ruislip

Greenford

Northolt

South Harrow

Sudbury Hill

Sudbury Town

Alperton

Park Royal

North Ealing

West Ruislip

Ealing Common

Gunnersbury

Kew Gardens

Richmond

Acton Town

ChiswickPark

TurnhamGreen

StamfordBrook

RavenscourtPark

WestKensington

BaronsCourt

Earl’sCourt

Shepherd’sBush Market

Goldhawk Road

Hammersmith

Wood Lane

WhiteCity

Finchley Road& Frognal

KensalRise

BrondesburyPark

Brondesbury

Kilburn High Road

South Hampstead

WestActon

NorthActon

EastActon

Southwark

Waterloo

London Bridge Bermondsey

Vauxhall

Lambeth NorthPimlico

Stockwell

Brixton

Elephant & Castle

Oval

Kennington

Borough

Clapham North

Clapham High Street

Clapham Common

Clapham South

Balham

Tooting Bec

Tooting Broadway

Colliers Wood

South Wimbledon

Morden

LadbrokeGrove

Latimer Road

Royal Oak

Westbourne Park

PuddingMill Lane

Acton Central

South Acton

HampsteadHeath

Stratford High Street

Abbey Road

WoodgrangePark

WalthamstowQueen’s Road

Oxford Circus

Paddington

West Silvertown

EmiratesRoyal Docks

PontoonDock

LondonCity Airport

WoolwichArsenal

King George V

Prince Regent

Royal Albert

Beckton Park

Cyprus

Beckton

Gallions Reach

RoyalVictoria

Romford

Farringdon

BondStreet

Moorgate

LiverpoolStreet

TottenhamCourt Road

Paddington WhitechapelActon

Main Line

Stratford

Custom House for ExCeL

Abbey Wood

Woolwich

WestDrayton

Slough

Burnham

Twyford

Reading

Maidenhead

Ilford

Goodmayes

Chadwell Heath

Gidea Park

Harold Wood

Shenfield

Brentwood

Seven Kings

Maryland

Manor Park

Forest Gate

Iver

Langley

Taplow

WestEaling

Southall

HanwellHayes &

Harlington

EalingBroadway

Barbican

HeathrowTerminal 5

HeathrowTerminal 4

HeathrowTerminals 2 & 3

Source: Crossrail route map. Available at: www.crossrail.co.uk/route/maps/

Figure 5Crossrail (the Elizabeth line) as it will appear on the London Underground map











Government and TfL projections of the benefits of Crossrail

The benefit–cost ratio in the latest 2011 update of the business case was 1.97. This means every £1 invested in Crossrail would achieve £1.97 of benefits to the economy. The assessed benefits of Crossrail in the economic appraisal of the programme are shorter journey times and less congestion. This is within the Department’s definition of ‘medium’ value for money, a range of 1.5 to 2. The benefit–cost ratio increases to £3.10 of benefits for every £1 of investment in Crossrail if estimated wider economic benefits are included. Crossrail Ltd has not updated the business case since 2011.

The business case states that Crossrail will bring about a wide range of additional economic and social benefits. For example:

• The Elizabeth line will bring 1.5 million more people within a 45-minute commute of the existing major employment centres of the West End, the City and Canary Wharf (up from 5 million currently), and make major international gateways like London Heathrow more accessible.

• Crossrail will support up to 14,000 construction jobs and 1,000 jobs operating and maintaining the railway once complete.

A memorandum on the Crossrail programme Who is paying for Crossrail? 13








The Crossrail funding and financing model



Crossrailtotal,

£17,570m

DfT direct funding (original), £4,960m

Loan from DfT to GLA, £1,300m

Loan from DfT to TfL (contingency), £750m

City of London Corporation committed funding, £250m

DfT additional funding (July 18), £150m

HAL, £70mNR financing for work on existing network, £2,300mVoluntary funding from London

businesses, £100m

DfT additional funding for NR, £290m

Contribution from GLA, £100mTfL direct funding (original), £1,900m

Business rate supplement, borrowing and direct contribution, £4,100m

Sale of surplus land and property, £550m

Community infrastructure levy, £300mDeveloper

contributions, £300m

TfL additional funding (July 18), £150m

Figure 6 Breakdown of contributions to the Crossrail funding package of £17.6 billion

Notes

1 Cost in £ millions, includes £750 million contingency loan announced in December 2018. Excludes the cost of the rolling stock and depot.

2 GLA = Greater London Authority; DfT = Department for Transport, TfL = Transport for London; NR = Network Rail; HAL = Heathrow Airport Limited.

3 Precise levels of funding from some sources, such as sale of surplus land and property may be subject to change.


A memorandum on the Crossrail programme Who is paying for Crossrail? 14











Funding for the project has increased by £2.8 billion to £17.6 billion

In 2007 the government announced a funding package from project sponsors of £15.9 billion for the infrastructure elements of the project, including improvements to the existing network to be delivered by Network Rail.

In 2010 project sponsors reduced available funding to £14.8 billion to reflect savings identified and revised cost estimates.

Reflecting cost pressures, in July 2018 the Department announced that project sponsors had agreed an additional £590 million of funding, bringing the overall funding to £15.4 billion.

Reflecting delays and further cost increases, in December 2018 the Department announced that it would loan £1.3 billion to the Greater London Authority (GLA). The GLA intend to repay this loan via London’s Business Rate Supplement and from the Community Infrastructure Levy. In addition the Department announced a £750 million loan could be made available to Transport for London (TfL) as additional contingency. The GLA has also agreed to make an additional cash contribution of £100 million. The total funding package for the infrastructure project is now £17.6 billion. The final cost of the programme is not yet known.

The upfront capital cost of rolling stock and depot is around £1 billion. The capital cost of the trains was funded directly by TfL and is outside the main funding package shown in Figure 7. In January 2018, TfL announced its intention to sell the rolling stock and to lease it back from the buyer, in order to release capital to invest in the enhancement of other tube lines. This transaction has not yet been concluded.

2007 2010 Jul 2018 Dec 2018

15.9 14.8 15.4 17.6

0

2

4

6

8

10

12

14

16

18

20

Figure 7Funding package

£ billion

Funding package (£bn)

Source: National Audit Office analysis of departmental information

A memorandum on the Crossrail programme Who is delivering Crossrail? 15









Crossrail Ltd Crossrail Ltd, previous Board



Network Rail

Delivering work on existing network

Rail for London (part of TfL)

Responsible for the rolling stock contract and the contract with the private sector operator of the railway

Suppliers and partners

Delivery

Sponsor oversight Department for Transport (DfT)

Programme sponsor and funder

Joint Sponsor Board

Monthly forum for sponsors to receive updates on, and challenge the Crossrail Ltd executive on, programme progress Four members (two from TfL and two from DfT – including one at director general level); rotating chair

Joint Sponsor Team

Supports the Sponsor Board – made up of representatives from TfL and DfT

Transport for London (TfL)

Programme sponsor and funder, and responsible for operating Elizabeth line services

Crossrail Project Representative (Jacobs)

Embedded in CRL. Reports on progress to sponsor team and carries out specific investigations at sponsors’ request

Reports to

Organisational oversight

Supplier

Informal reporting

Partners

Crossrail Ltd (CRL) Board

Independently chaired; TfL and DfT non-executive representatives; three executive-members (chief executive officer, chief financial officer, deputy chief executive officer); non-executives including chair and deputy

Construction and systems contractors Rolling stock contractor

(Bombardier)

Operator

(MTR Crossrail)

Figure 8 The governance and delivery structure


Crossrail Ltd

Wholly-owned subsidiary of TfL, set up to deliver the programme. Overall responsibility for programme integration and delivery of the operational railway

Post publication this page was found to contain an error which has been corrected (Please find Published Correction Slip)














Sponsor oversight

The Department and TfL are jointly sponsoring the Crossrail project. A number of agreements formalise delivery and governance arrangements:

• An agreement between the Department and TfL, which sets out the respective responsibilities of the two sponsors and how the programme will be governed.

• A Project Development Agreement between the Department, TfL and Crossrail Ltd, which defines Crossrail Ltd’s overall responsibility for successful delivery of Crossrail, including construction, integrating the programme and making preparations for operating the railway. The project development agreement did not state how sponsors would gain assurance about Crossrail Ltd’s readiness to move to the operational phase of the programme.

• A protocol between Network Rail and Crossrail Ltd sets out Network Rail’s responsibilities for delivering the surface elements of the route.

A joint sponsor board oversees the programme and meets monthly to discuss progress on the programme. A joint sponsor team supports the sponsor Board, and is made up of staff from TfL and the Department. The Project Representative (P-Rep) is a team of engineers and project management specialists from engineering firm Jacobs that is contracted by the sponsors to provide support and advice to the sponsor team and sponsor board. It reviews and provides commentary on Crossrail Ltd’s regular progress reports, as well as carrying out focused reviews of particular aspects of the programme.

In the project development agreement, the sponsors and Crossrail Ltd agreed a set of ‘intervention points’ to encourage Crossrail Ltd to keep its own direct costs within available funding, and set out actions sponsors could take in the event that forecast costs increased above specified thresholds. Crossrail Ltd’s forecast costs breached the first two intervention points in November 2015 and June 2017 respectively, which resulted in sponsors seeking assurance that Crossrail Ltd could bring costs under control.

The project formally breached the final intervention point in May 2018. At this stage, TfL could have required the Department to take ownership of Crossrail Ltd and either wind-up or continue with the project. In the event, sponsors decided not to take this option, but sought further assurances from Crossrail Ltd that it could bring costs under control.

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Delivery

Crossrail Ltd is a company wholly owned by TfL that is responsible for delivering the programme, from building the line and stations, through to integrating systems and providing an operational railway. The main governance body overseeing delivery of the programme is the Crossrail Ltd Board. Sponsors’ oversight of the programme has been through appointed non-executive members of the Board and through discussions with the Crossrail Executive at the Sponsor Board. The Crossrail Board does not report to the sponsor Board.

The Crossrail delivery model, which involves the establishment of a separate delivery body, was previously used on the programme to develop the Olympic Park (now the Queen Elizabeth Olympic Park) in Newham, east London, and to construct the venues required for the 2012 London Olympic and Paralympic Games. This model is now being used on, for example, High Speed 2. The Crossrail model differs from the Olympics and High Speed 2 in that the Olympic Delivery Authority was, and High Speed 2 Ltd is, a non-departmental public body sponsored by government departments, and chief executive officers who are/were also accounting officers.

Crossrail Ltd earned autonomy from the sponsors to deliver the programme – meaning that it had, for example, authority to award major contracts – by passing four review points between July 2008 and April 2011. In our January 2014 report on Crossrail we recommended that the Department should finalise its plans for the development of governance arrangements as appropriate for the transition from construction to operation.

Suppliers

Crossrail is being delivered through contracts between Crossrail Ltd and a range of private sector suppliers, including programme delivery partners, Bechtel and Transcend (a consortium of AECOM, CH2M Hill and Nichols Group), Siemens, and other joint ventures from firms including Alstom, Costain, Skanska and Balfour-Beatty. These main contractors have contracts with other suppliers for the supply of services, materials and components of the railway. The contract to design, build and maintain the trains is between TfL and Bombardier Transportation.

Although Network Rail is a public sector body sponsored by the Department, on the Crossrail programme it functions as a partner to Crossrail Ltd, funded directly by the Department, with its responsibilities set out in the protocol agreement between Network Rail and Crossrail Ltd.

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Crossrail Ltd

There were significant changes to the executive team and board during 2018 to strengthen Crossrail Ltd’s capabilities:

• The Crossrail Board approved the appointment of a new executive management team during late 2018. The sponsors also approved the appointment of the chair and chief executive.

• Crossrail Ltd’s current Board of Directors is chaired by Tony Meggs, previously the Chief Executive of the Infrastructure and Projects Authority, following the resignation of Sir Terry Morgan in December 2018.

• The new Chief Executive, Mark Wild, was previously a non-executive member of the Crossrail Board and has been appointed on secondment from his role as Managing Director of London Underground.

• Three members of Crossrail’s Board have been with the project for more than one year (Figure 9).

The sponsors have increased their representation on Crossrail Ltd’s Board to increase scrutiny and support transition to operations:

• The Board now includes two non-executive directors nominated by the Department.

• TfL now has two appointed non-executive nominees on the Board.

• Up to mid-2018, each sponsor only had one nominated non-executive member on the Board.

Chairman

Tony Meggs(from 14 Jan 2019)

Deputy Chief Executive

Chris Sexton(from 1 Apr 2018)

Chief Finance Officer

David Hendry(from 10 Nov 2018)

Non-ExecutiveTfL nominee

Dr Nelson Ogunshakin(from 1 Jul 2018)

Non-ExecutiveIndependent

Phil Gaffney(from 2011)

Non-ExecutiveDepartment

nominee

Robert Jennings CBE

(from 2009)

Non-ExecutiveDepartment

nominee

Andy Pitt(from 1 Jul 2018)

Chief Executive

Mark Wild(from 19 Nov 2018)

Previously TfL nominee

Deputy ChairmanIndependent

Nick Raynsford(from 14 Jan 2019)


Anne McMeel(from 1 July 2018)

Figure 9Crossrail Ltd Board of Directors at February 2019

Note

1 The Chief Executive, Deputy Chief Executive and Chief Finance Offi cer are executive members of the board.


Board member for less than one year

Board member for more than one year













Crossrail Ltd, previous Board

Figure 10 Crossrail Ltd Board of Directors at 31 March 2018

Chairman

Sir Terry Morgan(until 5 Dec 2018)

Non-ExecutiveIndependent

Phil Gaffney (from 2011)

Chief Executive

Andrew Wolstenholme (to 31 Mar 2018)

Non-ExecutiveDepartment nominee

Robert Jennings CBE (from 2009)

Programme Director

Simon Wright (Chief Executive from Apr to Nov 2018)

Non-Executive (SID)

Terry Hill (until 30 Jun 2018)

Non-Executive

Michael Cassidy (until 30 Jun 2018)

Finance Director

Mathew Duncan (until 9 Nov 2018)

Non-Executive

Pam Alexander (until 30 Jun 2018)


Mark Wild (from Sep 2016) Chief Executive since 19 Nov 2018

Remuneration in 2017-18 Salary Performance related pay for 2016-17

Compensation for loss of employment

Benefits in kind Total remuneration (excluding pension contributions)

Total remuneration (excluding pension contributions)

2017-18 2017-18 2017-18 2017-18 2017-18 2016-17

(£000) (£000) (£000) (£000) (£000) (£000)

Andrew Wolstenholme, Chief Executive 477 160 98 2 736 946

Simon Wright, Programme Director 329 106 – 2 436 494

Sir Terry Morgan, Non-Executive Chairman 250 – – 2 252 252

Mathew Duncan, Finance Director 247 112 – 2 361 270

Note1 The sponsor agreement, to which the Department and TfL are parties, sets out the Remuneration Principles governing the remuneration and benefi ts package which applies to all members of the Crossrail Ltd Board. The Crossrail Ltd Remuneration Committee

develops the Remuneration Framework, consistent with the Remuneration Principles. TfL approves the Remuneration Framework and ensures that the Secretary of State is provided with the approved Framework promptly. The Secretary of State may object to any part of the Remuneration Framework or a specifi c remuneration and benefi ts package which is not consistent with the Remuneration Principles and TfL shall take appropriate action to ensure that the inconsistency is addressed. The remuneration and benefi ts package of the executive directors of Crossrail Ltd and the chair and chief executive offi cer of Crossrail Ltd is determined by the Crossrail Ltd Remuneration Committee in accordance with the Remuneration Framework and in consultation with TfL.

Source: Transport for London Annual Report and Statement of Accounts, 2017-18

Remains a Board member

No longer a Board member

Crossrail Ltd senior remuneration















Figure 11The Department and TfL commissioned KPMG to perform three reviews of the programme

Review Purpose

Financial and commercial(published January 2019)

Available at: http://content.tfl .gov.uk/fi nancial-and-commercial-redacted.pdf

To establish the extent to which Crossrail Ltd’s fi nancial modelling refl ects the true state of the fi nances of the programme. It was a high-level assessment and did not include detailed analysis of the programme schedule or remaining works. It found that based on this information, it expected the programme to need between £1.6 billion and £2 billion more to complete the programme, including the additional £300 million announced in July 2018.

The sponsors used this work to determine the revised funding package, and the amount the Department would loan the Greater London Assembly and TfL.

Governance (published January 2019)

Available at: http://content.tfl .gov.uk/governance-redacted.pdf

To assess how governance and oversight of the programme had been working, and to make recommendations for improvement. It examined the relationship between the sponsors and Crossrail Ltd, and information coming to the Crossrail Board and on to the sponsors. It found that:

• Reporting within, and by, Crossrail Ltd was neither timely, nor suffi ciently clear, as to the impacts and magnitude of the range of probable consequences of issues within the programme.

• Crossrail has taken action to update governance arrangements to refl ect the changing nature of the programme. For example, Crossrail Ltd has created the Elizabeth line Strategic Steering Group. However, the revised governance arrangements have not suffi ciently refl ected the changing balance between construction, systems, integration and operational readiness activities.

• The Project Representative reported many of the key issues and risks to achieving the December 2018 opening date for the central section, but did not provide an assessment of the potential or likely impact on the opening date. KPMG found that the Project Representative did not adequately challenge Crossrail Ltd in its assumptions that it could recover delays, but this is not necessarily the view of sponsors.

• There was a much-reduced level of internal scrutiny during 2017-18 and 2018-19, as the Crossrail Board continued with its plans to reduce central resources. This included reduced internal audit coverage and disbanding the Crossrail Limited Audit Committee in July 2018 and the reallocation of its responsibilities.

The sponsors are considering what actions to take as a result of the review.

Timeline of events To validate the Department’s timeline of events between November 2017 when the explosion at Pudding Mill Lane occurred, and October 2018. The fi rst phase of this work confi rmed that the Department’s timeline was largely consistent with source documents. A second phase is now underway to produce a more detailed timeline of events. Sponsors plan to publish this work once the second phase is complete.

Source: KPMG reviews

A memorandum on the Crossrail programme How is Crossrail being delivered? 21











The Crossrail programme has the following main components:

Tunnels

The 26 miles of Crossrail tunnels were created by eight tunnel-boring machines, each lowered into a series of shafts along the route. The machines cut their way beneath London with precision, removing spoil and creating the main structure of tunnels as they went.

Systemwide track and electrification

Once the tunnels had been built, concrete slab track and the steel railway itself could be laid, as well as the overhead lines required to provide power to the trains, and the systems needed to operate the railway.

Stations

The Crossrail programme required the construction of 10 new stations; seven of them below ground in the central section and three on the existing network. The programme also included the enhancement of 31 existing stations. Each station platform is around 240 metres long to accommodate the 200-metre-long, nine-carriage trains. A range of complex IT systems support management of the stations, including keeping passengers safe, and ensuring that they can move efficiently through the stations.

Trains and depots

In February 2014, TfL awarded the contract to design, build and maintain the trains that will run on the Elizabeth line (including a maintenance depot). The new Class 345 trains have new systems to provide passengers with information. Passengers are able to walk through the train from carriage to carriage and each train is designed to carry 1,500 passengers.

Railway operations

In July 2014, TfL awarded a concession contract to Mass Transit Railway (MTR), a transport operating company based in Hong Kong, to operate Elizabeth line services. MTR Crossrail began running services on the eastern section of the railway in May 2015 and has a contract to operate services for eight years, with an option to extend to 10 years.













The design of the programme involves a number of complex elements.

The trains

Crossrail’s new Class 345 trains are the first of a new class of train involving new systems and software. They will be run with nine carriages and will be nearly twice the length of a tube train, and are designed to carry 1,500 passengers.

Signalling

The Crossrail trains will use an on-board Train Control and Management System (TCMS) to integrate information from a range of signalling systems to maintain safe and effective operations. The nature of the Crossrail route, which runs on both the existing national network and a new section of underground railway will use three separate signalling systems: Train Protection Warning System (TPWS), which is used on the mainline sections of the railway and is focused on ensuring safe operation of the railway; and two separate systems – Communication Based Train Control (CBTC) and European Train Control System (ETCS) – which use technology on the trackside and train to identify the position of trains and issue instructions to both maintain safety and enable the railway to operate with shorter distances between trains to increase overall capacity. The safe and efficient operation of Crossrail services depends on the TCMS software being able to switch between these three systems as the trains move from one part of the route to another. This transition between signalling systems has not been used in this way before on the UK’s railways. Figure 12 shows which signalling systems are being used on which sections of the railway.

Operational systems

To maintain safe and efficient management of stations, Crossrail will use Supervisory Control and Data Acquisition (SCADA) software. These systems require data collection sensors to be installed in stations to enable key systems such as on-platform sliding doors, lifts and escalators to be monitored effectively.

Stations

A number of the stations on the Crossrail route have been designed to a high architectural specification. Examples of complex design features include the roof and ceiling of the ticket hall at Farringdon station and the extensive use of a large steel and glass canopy at Paddington station to bring in natural light.

Mark Wild, Crossrail Ltd Chief Executive, has stated that integrating the stations into the new railway and into the wider London underground and national rail network is a significant undertaking. There are around 60,000 different elements that must be integrated for the stations to operate effectively. TfL would usually undertake this activity once a year. Crossrail Ltd is developing its schedule and approach to do this for 10 stations in a compressed timeframe.

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Integration of a complex programme 2/2

Train Protection Warning System (TPWS)

European Train Control System L2 (ETCS L2)

Communication Based Train Control (CBTC)

Train Protection Warning SystemTrain Protection Warning System European Train Control System L2

Communication Based Train ControlEuropean Train Control System L2

To Reading

Taplow

Stratford

Burnham

Maryland Chadwell Heath

Langley

Manor Park

Gidea Park Brentwood

West Drayton

Seven Kings

West Ealing

Acton Mainline

Bond Street

Tottenham Court Road

Liverpool Street

Farringdon Custom House

WoolwichCanary Wharf

Whitechapel

Southall

Slough

Forest Gate

Iver

Ilford

Hayes &Harlington

Goodmayes

Ealing Broadway

HaroldWood

Hanwell

Romford

MAIDENHEAD

SHENFIELD

HEATHROW

PADDINGTON(Main)

PADDINGTON(Low Level)

ABBEY WOOD

Note

1 TPWS will be used from Reading to Paddington until ETCS is fi tted on the Great Western main line.


Figure 12 Signalling systems on the Crossrail route

A memorandum on the Crossrail programme When will Crossrail be complete and open? 24










Remaining work


From late 2017, cost pressures escalated, eventually causing costs to exceed the revised £14.8 billion funding agreed by sponsors in 2010.

Risks to the schedule began to materialise. First there were delays to the train software, and then delays to the testing of the trains in the tunnels. Crossrail produced a revised schedule to allow testing while construction and fit out continued, but in August 2018 it was decided that the December 2018 deadline for opening the central section could not be met. 2017 2018

Jun 2017

Crossrail raises concerns with sponsors regarding uncertainty of timely development of on-board signalling and train control management software.

Crossrail reports that costs have breached Intervention Point 1, triggering a drawdown of funds from a Transport for London (TfL) Contingency Fund of £600 million.

Mar 2018

Crossrail produces a revised opening schedule, stating that December 2018 is still achievable, but increasingly challenging.

Crossrail reports that costs have breached Intervention Point 2.

Aug 2018

Crossrail Ltd raises an Adverse Event Notice to Sponsors, stating the delay to the central section from December 2018 to Autumn 2019.

Dec 2018

Interim findings of the KPMG report, state that Crossrail’s works could cost £1.6 billion – £2 billion more than expected, including £300 million announced in July.

The Department announces loans of £1.3 billion to the Greater London Authority (GLA) and £750 million to TfL as contingency. The GLA makes £100 million contribution. This financing incorporates the £350 million announced in October.

Crossrail announces that it can no longer commit to the Autumn 2019 date.

Oct 2018

Rail Minister announces a further £350 million of interim financing will be made available to Crossrail.

May 2018

Stage 2 opening partially achieved. TfL Started running 2 class 345 trains per hour from Paddington to Hayes and Harlington, rather than 4 class 345 trains per hour to Heathrow as planned.

Jul 2018

Rail Minister announces £590 million additional funding, of which £300 million was provided jointly by the Department and TfL to Crossrail Ltd, and £290 million by the Department to Network Rail.

Nov 2017

Failure of transformer equipment at Pudding Mill Lane delays start of train testing by 3 months. Crossrail begins to develop a new schedule for the programme to account for this.

Figure 13Recent events on the Crossrail programme












Remaining work


The Department and TfL originally planned for the central section of the railway to start running from December 2018. In 2010, sponsors decided to stagger the opening of the railway by opening the railway in sections and introducing services in a phased way. This was in order to reduce risks – and therefore reduce the costs allocated to risks – associated with opening the railway ‘all at once’.

As Figure 14 on the right shows, Crossrail Ltd did not open the full, planned services for stages 1 and 2 on time, and it remains unclear when stages 3, 4 and 5 will open. New class 345 Bombardier trains are in use between Shenfield and Liverpool Street as part of the opening of stage 1 services, but are not yet in use between Heathrow and Paddington as had been planned. This is because the software required to use the ETCS signalling system that is on the line into Heathrow has not yet been successfully implemented and tested.

Project sponsors have agreed a concession arrangement with Mass Transit Railway (MTR) to operate the new railway. MTR are paid a performance-related fee for operating the railway, with TfL retaining revenues. Because of the delays to opening the railway, TfL’s revenues will not start to increase significantly until stage 5 is complete and full end-to-end journeys through central London are possible. TfL’s December 2018 business plan states that its revenues could be around £600 million lower than expected as a result of delays to the opening of Crossrail services. Because Crossrail Ltd and sponsors have not yet confirmed the opening dates for stages 3, 4 and 5, these estimates remain uncertain.

Crossrail Ltd is currently developing a new schedule for the programme.

Figure 14Current plans for introducing new Elizabeth line services

Stage Description Target date Actual/forecast delivery

1 Liverpool Street (main line) to Shenfield May 2017 June 2017

2 Heathrow to Paddington (main line) May 2018 Stage 2 opening partially achieved in May 2018. Two Class 345 trains per hour are running from Paddington to Hayes and Harlington, rather than four trains per hour to Heathrow as planned. The Department currently expects four trains per hour to be running by December 2019

3 Paddington (Crossrail) to Abbey Wood – using new Class 345 trains with 15 trains per hour

December 2018 Unknown

4 Paddington (Crossrail) to Shenfield – using new Class 345 trains with 12 trains per hour

May 2019 Unknown – dependent on stage 3

5 Full east–west service with 24 trains per hour in each direction

December 2019 Unknown – dependent on stage 3. There are currently plans to introduce some Crossrail services between the existing Paddington station and Reading from December 2019












Remaining work

Remaining work

There remains significant work to complete in key areas: the construction and fit-out of the tunnels and stations; and the testing of the signalling and other systems.

Construction and fit-out of the tunnels and stations:

• Work to fit-out tunnels with, for example, cabling and equipment needed to support signalling systems is not yet complete.

• Stations are in different states of completion and there is still significant work to be completed. Bond Street and Whitechapel stations have caused particular problems. Stations are not required to be fully completed in order for some services to start running but opening the railway without stopping at some unfinished stations will delay passengers receiving the full benefits of the railway, and significant further construction work could continue to delay testing.

Testing of the signalling and other systems:

• This includes the lineside signalling systems, the signalling equipment on the trains, as well as the station systems that remotely monitor and control systems, for example, ventilation.

• The software and infrastructure required to operate the complex signalling systems on trains and at the trackside has been significantly delayed. These systems are critical for the safe and efficient operations of services.

• Crossrail Ltd is adopting an incremental approach to the testing of trains running through tunnels, gradually increasing the number of trains tested on the central section, before beginning testing across the entire line. Crossrail Ltd does not yet know how long this testing will take.

Trial running and preparing for operations:

• Once the signalling and safety systems are complete and full testing has been carried out, the railway will be ready to be commissioned and handed over to the operator to begin trial running. This process allows operators to test how the service will work in practice, and refine areas such as passenger management, and how to address delays and faults when they occur.

A memorandum on the Crossrail programme Previous examinations of Crossrail by PAC and the NAO 27









Relevant reports and transcripts of the Committee of Public Accounts (PAC)

Crossrail, Eighth Report of Session 2014-15, Session 2014-15, HC 574, July 2014 . Available at: www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news/report-crossrail/

Oral evidence, Rail Franchising in the UK, HC 689, February 2018 . Available at: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/rail-franchising-in-the-uk/oral/79138.pdf

Oral evidence, Department for Transport: Implementation of Brexit, HC 1657, October 2018 . Available at: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/department-for-transport-implementation-of-brexit/oral/92048.pdf

Oral evidence, Rail management and disruption, HC 1793, December 2018 . Available at: http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/rail-franchising/oral/93794.pdf

Relevant report of the National Audit Office (NAO)

Crossrail, Session 2013-14, HC 965, January 2014. Available at: www.nao.org.uk/report/crossrail-3/

https://www.parliament.uk/business/committees/committees-a-z/commons-select/public-accounts-committee/news/report-crossrail/

http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/rail-franchising-in-the-uk/oral/79138.pdf

http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/department-for-transport-implementation-of-brexit/oral/92048.pdf

http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/public-accounts-committee/rail-franchising/oral/93794.pdf

https://www.nao.org.uk/report/crossrail-3/

Report by the Comptroller and Auditor General

A memorandum on the Crossrail programmeHC 1924 Session 2017–2019

ISBN 9781786042439

Ordered by the House of Commons to be printed on 25 February 2019

CORRECTION

On page 15 of the memorandum: We propose changing the wording describing the role of the Joint Sponsor Board in the governance diagram on page 15 from:

Monthly forum sponsors to receive updates on, and challenge, programme progress

to:

Monthly forum for sponsors to receive updates on, and challenge the Crossrail Ltd executive on, programme progress

This then makes it clear that the Crossrail exec attends sponsor board and is challenged on progress. We also propose including a solid red arrow on the right hand side of the diagram from the box ‘Crossrail Ltd’ to the box ‘Joint Sponsor Board’.

See the corrected Figure 8 overleaf.

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acto

rs R

olli

ng

sto

ck c

on

trac

tor

(Bom

bard

ier)

Op

erat

or

(MTR

Cro

ssra

il)

Fig

ure

8 T

he g

over

nanc

e an

d de

liver

y st

ruct

ure

Sou

rce:

Nat

iona

l Aud

it O

ffi ce

ana

lysi

s of

dep

artm

enta

l inf

orm

atio

n

Cro

ssra

il Lt

d

Who

lly-o

wne

d su

bsid

iary

of T

fL, s

et u

p to

del

iver

the

prog

ram

me.

O

vera

ll re

spon

sibi

lity

for

prog

ram

me

inte

grat

ion

and

deliv

ery

of th

e op

erat

iona

l rai

lway

BA

CK

Net

wo

rk R

ail

Del

iver

ing

wor

k on

exi

stin

g ne

twor

k

Rai

l fo

r L

on

do

n (p

art

of

TfL

)

Res

pons

ible

for

the

rolli

ng s

tock

con

trac

t and

the

cont

ract

with

th

e pr

ivat

e se

ctor

ope

rato

r of

the

railw

ay

Su

pp

liers

an

d

par

tner

s

Del

iver

y

Sp

on

sor

ove

rsig

ht

Dep

artm

ent

for

Tran

spo

rt (D

fT)

Pro

gram

me

spon

sor

and

fund

er

Join

t S

po

nso

r B

oar

d

Mon

thly

foru

m fo

r sp

onso

rs to

rec

eive

upd

ates

on,

and

cha

lleng

e th

e C

ross

rail

Ltd

exec

utiv

e on

, pro

gram

me

prog

ress

Fo

ur m

embe

rs (t

wo

from

TfL

and

tw

o fr

om D

fT –

incl

udin

g on

e at

dire

ctor

gen

eral

leve

l); r

otat

ing

chai

r

Join

t S

po

nso

r Te

am

Sup

port

s th

e S

pons

or B

oard

– m

ade

up o

f re

pres

enta

tives

from

TfL

and

DfT

Tran

spo

rt f

or

Lo

nd

on

(TfL

)

Pro

gram

me

spon

sor

and

fund

er, a

nd r

espo

nsib

le fo

r op

erat

ing

Eliz

abet

h lin

e se

rvic

es

Cro

ssra

il P

roje

ct R

epre

sen

tati

ve (J

aco

bs)

Em

bedd

ed in

CR

L. R

epor

ts o

n pr

ogre

ss to

spo

nsor

team

an

d ca

rrie

s ou

t spe

cific

inve

stig

atio

ns a

t spo

nsor

s’ r

eque

st

Rep

orts

to

Org

anis

atio

nal

over

sigh

t

Sup

plie

r

Info

rmal

rep

ortin

g

Par

tner

s

Cro

ssra

il Lt

d (C

RL)

Bo

ard

Inde

pend

ently

cha

ired;

TfL

and

DfT

non

-exe

cutiv

e re

pres

enta

tives

; thr

ee e

xecu

tive-

mem

bers

(chi

ef e

xecu

tive

offic

er, c

hief

fina

ncia

l offi

cer,

depu

ty c

hief

exe

cutiv

e of

ficer

); no

n-ex

ecut

ives

incl

udin

g ch

air

and

depu

ty

Co

nst

ruct

ion

and

sys

tem

s co

ntr

acto

rs R

olli

ng

sto

ck c

on

trac

tor

(Bom

bard

ier)

Op

erat

or

(MTR

Cro

ssra

il)

Fig

ure

8 T

he g

over

nanc

e an

d de

liver

y st

ruct

ure

Sou

rce:

Nat

iona

l Aud

it O

ffi ce

ana

lysi

s of

dep

artm

enta

l inf

orm

atio

n

Cro

ssra

il Lt

d

Who

lly-o

wne

d su

bsid

iary

of T

fL, s

et u

p to

del

iver

the

prog

ram

me.

O

vera

ll re

spon

sibi

lity

for

prog

ram

me

inte

grat

ion

and

deliv

ery

of th

e op

erat

iona

l rai

lway

BA

CK

On page 21 of the memorandum: We also propose changing the date when MTR Crossrail started running services on the eastern section of the line on page 21 from:

MTR Crossrail began running services on the eastern section of the railway in June 2017

to:

MTR Crossrail began running services on the eastern section of the railway in May 2015

The corrected paragrah should read

Railway operations

In July 2014, TfL awarded a concession contract to Mass Transit Railway (MTR), a transport operating company based in Hong Kong, to operate Elizabeth line services. MTR Crossrail began running services on the eastern section of the railway in May 2015 and has a contract to operate services for eight years, with an option to extend to 10 years.

On page 19 of the memorandum: We also propose changing the date the finance director was no longer a board member, from:

Finance Director Mathew Duncan (until 19 November 2018)

to:

Finance Director Mathew Duncan (until 9 November 2018)

See the corrected Figure 10 overleaf.

007232-001 | February 2019

BACK

Fig

ure

10

Cro

ssra

il Lt

d B

oard

of D

irect

ors

at 3

1 M

arch

201

8

Ch

airm

an

Sir

Terr

y M

orga

n(u

ntil

5 D

ec 2

018)

No

n-E

xecu

tive

Ind

epen

den

t

Phi

l Gaf

fney

(fro

m 2

011)

Ch

ief

Exe

cuti

ve

And

rew

Wol

sten

holm

e (to

31

Mar

201

8)

No

n-E

xecu

tive

Dep

artm

ent n

omin

ee

Rob

ert J

enni

ngs

CB

E (f

rom

200

9)

Pro

gra

mm

e D

irec

tor

Sim

on W

right

(Chi

ef E

xecu

tive

from

Ap

r to

Nov

201

8)

No

n-E

xecu

tive

(SID

)

Terr

y H

ill (u

ntil

30 J

un 2

018)

No

n-E

xecu

tive

Mic

hael

Cas

sid

y (u

ntil

30 J

un 2

018)

Fin

ance

Dir

ecto

r

Mat

hew

Dun

can

(unt

il 9

Nov

201

8)

No

n-E

xecu

tive

Pam

Ale

xand

er (u

ntil

30 J

un 2

018)

No

n-E

xecu

tive

TfL

nom

inee

Mar

k W

ild (f

rom

Sep

201

6)

Chi

ef E

xecu

tive

sinc

e 19

Nov

201

8

Rem

uner

atio

n in

201

7-18

Sal

ary

Per

form

ance

rel

ated

p

ay fo

r 20

16-1

7C

om

pen

satio

n fo

r lo

ss o

f em

plo

ymen

tB

enef

its in

kin

dTo

tal r

emun

erat

ion

(exc

lud

ing

pen

sio

n co

ntri

but

ions

)To

tal r

emun

erat

ion

(exc

lud

ing

pen

sio

n co

ntri

but

ions

)

2017

-18

2017

-18

2017

-18

2017

-18

2017

-18

2016

-17

(£0

00)

(£0

00)

(£0

00)

(£0

00)

(£0

00)

(£0

00)

And

rew

Wol

sten

holm

e, C

hief

Exe

cutiv

e47

7 16

0 98

2

736

946

Sim

on W

right

, Pro

gram

me

Dire

ctor

329

106

–2

436

494

Sir

Terr

y M

orga

n, N

on-E

xecu

tive

Cha

irman

250

––

225

2 25

2

Mat

hew

Dun

can,

Fin

ance

Dire

ctor

247

112

–2

361

270

No

te1

The

spon

sor

agre

emen

t, to

whi

ch th

e D

epar

tmen

t and

TfL

are

par

ties,

set

s ou

t the

Rem

uner

atio

n P

rinci

ple

s go

vern

ing

the

rem

uner

atio

n an

d b

enefi

ts p

acka

ge w

hich

ap

plie

s to

all

mem

ber

s of

the

Cro

ssra

il Lt

d B

oard

. The

Cro

ssra

il Lt

d R

emun

erat

ion

Com

mitt

ee

dev

elop

s th

e R

emun

erat

ion

Fram

ewor

k, c

onsi

sten

t with

the

Rem

uner

atio

n P

rinci

ple

s. T

fL a

pp

rove

s th

e R

emun

erat

ion

Fram

ewor

k an

d en

sure

s th

at th

e S

ecre

tary

of S

tate

is p

rovi

ded

with

the

app

rove

d Fr

amew

ork

pro

mpt

ly. T

he S

ecre

tary

of S

tate

may

ob

ject

to

any

par

t of t

he R

emun

erat

ion

Fram

ewor

k or

a s

pec

ifi c

rem

uner

atio

n an

d b

enefi

ts p

acka

ge w

hich

is n

ot c

onsi

sten

t with

the

Rem

uner

atio

n P

rinci

ple

s an

d Tf

L sh

all t

ake

app

rop

riate

act

ion

to e

nsur

e th

at th

e in

cons

iste

ncy

is a

dd

ress

ed. T

he r

emun

erat

ion

and

ben

efi ts

p

acka

ge o

f the

exe

cutiv

e d

irect

ors

of C

ross

rail

Ltd

and

the

chai

r an

d ch

ief e

xecu

tive

offi c

er o

f Cro

ssra

il Lt

d is

det

erm

ined

by

the

Cro

ssra

il Lt

d R

emun

erat

ion

Com

mitt

ee in

acc

ord

ance

with

the

Rem

uner

atio

n Fr

amew

ork

and

in c

onsu

ltatio

n w

ith T

fL.

Sou

rce:

Tra

nsp

ort f

or L

ond

on A

nnua

l Rep

ort a

nd S

tate

men

t of A

ccou

nts,

201

7-18

Rem

ains

a B

oard

mem

ber

No

long

er a

Boa

rd m

embe

r

Cro

ssra

il Lt

d s

enio

r re

mu

ner

atio

n

BA

CK

This report has been printed on Evolution Digital Satin and contains material sourced from responsibly managed and sustainable forests certified in accordance with the FSC (Forest Stewardship Council).

The wood pulp is totally recyclable and acid-free. Our printers also have full ISO 14001 environmental accreditation, which ensures that they have effective procedures in place to manage waste and practices that may affect the environment.

£10.00

9 781786 042439

ISBN 978-1-78604-243-9

Design and Production by NAO External Relations DP Ref: 007232-001

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