Crossrail delays could cost two billion pounds11 December 2018
Great Britain – The British government has announced that reviews into Crossrail’s finances have shown that costs related to the delayed opening of the central section could be as high as GBP 2bn (USD 2.5bn). The figure includes GBP 300M already contributed by the Department for Transport in July and GBP 1.3-1.7bn in expected additional costs. The overall cost of the project at the time of writing is GBP 17.6bn (USD 22bn).
A spokesperson for the Department for Transport said, “The government, the Mayor of London and TfL have agreed a financial package to cover this. The Department for Transport will provide a loan of up to GBP 1.3bn to the Greater London Authority (GLA). The GLA intend to repay this loan via London’s Business Rate Supplement (BRS) and from the Mayoral Community Infrastructure Levy (MCIL). The GLA will also provide a GBP 100M cash contribution, taking its total contribution for this package to GBP 1.4bn.
“As the final costs of the Crossrail project are yet to be confirmed, a contingency arrangement has also been agreed between TfL and the Department for Transport. The Department for Transport will loan TfL up to GBP 750 million in the event that further finance is required for the project.
“This combined financing deal will replace the need for the GBP 350M interim financing package announced by the Department for Transport in October 2018.”
The financial review was handled by KPMG.