Crossrail Governance

Simon Adams – Head of Commercial Crossrail 2

Header here max 30 characters Crossrail – enabling London to grow

£14.8bn cost

£42bn

net benefit

118 km

length

40 (10 new) stations

24 Trains/hour

200m journeys pa

Heathrow Reading

Shenfield

Canary Wharf

The City Paddington

Abbey Wood

Header here max 30 characters Tunnels Complete

Header here max 30 characters Systems installation completes 2018

Header here max 30 characters Funding – A partnership between Central and Sub-national government.

£14.8bn

Other (£2.45bn)

Network Rail

Others

Central Gov. (£5.20bn)

London Gov. (£7.15bn)

GLA

Business Rates

Community Infrastructure Levy

TfL

Fares

Developers Contribution

Property redevelopment

Heathrow Airport City of London

Dept. Transport

Direct Grant

Funding Model places London in first loss position, with Central Government the lender of

last resort.

Header here max 30 characters Considerations in developing the Governance Model

• Accountability and Authority: • Provide clarity between the role of Central Government and London Government (“The

Sponsors”) and the delivery entity.

• Ensure the delivery entity has sufficient decision making authority, without reverting to protracted government processes.

• Discipline, Transparency and Disclosure: • Ensure a clear statement of project objectives and delivery parameters, with controls on

change.

• Ensure visibility of public expenditure and public procurements.

• Provide for independent assurance and oversight, without overburdening the project.

• Risk allocation and Value for Money: • Ensure the clear and appropriate allocation of risk that demonstrates Value for Money.

A PPP structure met many of these objectives but scale, complexity

and market capacity limited the extent to which risk could be

transferred, and Value for Money achieved.

Header here max 30 characters Hybrid Model - Publicly Owned SPV

London Gov. (SPV Owner)

Central Gov.

SPV Crossrail Ltd (Publicly Owned)

Funding Agreement

Development Agreement

Shareholder

Agreement

London Underground

Network Rail

Docklands Light Railway

Property Developers Construction

Contracts

Concession for Operations

Rolling Stock / Depot

Industry Partner

Contracts

Operator (Transport for

London)

Operating

Contracts

Oversight Team

Sponsor Board

Agreement

Header here max 30 characters Has it worked?

• Continuity of funding and freedom from political interference.

• Sponsors have benefited from a high degree of disclosure, enabling a relatively small team to maintain effective oversight.

• Contractual discipline has provided for role clarity, a clear allocation of risk and very low levels of Sponsor change.

• Once authority was delegated to the SPV Board (following a series of Review Points) it has allowed timely decision making.

• Crossrail is set to be delivered on time and within its funding envelope.

• Crossrail 2 is being planned, utilising the same Governance model.

“We found that the Department for Transport and Transport for London have

established governance and oversight arrangements that provide a clear

view of risks to their financial interest and to successful delivery of the

programme.” – National Audit Office Jan 2014.

Header here max 30 characters Crossrail experience is captured in the IUK Project Initiation

Routemap - that links well to the emerging OECD Framework.

https://www.gov.uk/government/uploads/system/u

ploads/attachment_data/file/361175/Governance_

Module_30_Sept.pdf

Header here max 30 characters Moving London Forward