NAO questions Thameslink train delay
The Thameslink project may not be value for money because of delays of more than three years in agreeing the contract to buy new trains.
The
National Audit Officesaid it is concerned by the delay, but also praised the project’s control of infrastructure costs as “within the original budget.
“It’s too early in the Thameslink programme to conclude on whether or not it will achieve value for money,” said Amyas Morse, head of the
NAO.
“That will have to wait until the new service is running.
“However, there has been good progress in delivering the first stage of the infrastructure part of the programme on time and under budget, which the Department now needs to build on.
“Our principal concern is around the delay in agreeing the contract to build new trains which raises questions about the feasibility of delivering the whole Programme by 2018.”
Phase one of the new rail route through central London cost £1.704bn, was completed on time and was £143m under budget.
According to today’s report, there continues to be a robust transport case for the £3.552bn (at 2006 prices) Programme.
The NAO said Thameslink services have consistently been among the most crowded London routes with passengers amongst the least satisfied with space on trains; and demand is forecast to increase.
The Department estimates that the Programme will make net present benefits of £2.9 billion through reduced journey times, reduced overcrowding on trains and quicker interchanges between services.
“The Department needs to manage a complex interaction between completing the infrastructure project; buying new trains; and letting a new franchise,” the NAO report said.
“Delays to any of these projects can delay significantly or complicate delivery of other parts of the Programme.
“The award of the estimated £1.6 billion contract to buy new trains is currently delayed by over three years and this has implications for the rest of the programme and also plans for electrification of other parts of the rail network.
“The delay raises questions about whether the Department underestimated the scale of the work, time and skills and resources it needed to negotiate a PFI deal of this complexity. And until the contract is let it will not be clear whether delivery of the whole Programme by 2018 is still feasible.”
The NAO said government needs to ensure it has the necessary capacity and skills to keep it on course alongside other rail projects it manages, such as Crossrail and High Speed 2.
PoliticsHome Newsletters
Get the inside track on what MPs and Peers are talking about. Sign up to The House's morning email for the latest insight and reaction from Parliamentarians, policy-makers and organisations.