The Mayor of London, Transport for London (TfL), the Department for Transport (DfT) and the treasury have agreed a funding and financing package for the final phase of Crossrail.
Back in August Crossrail Ltd said it was now hoping to open the central section of the Elizabeth Line in the first half of 2022 and that this would require extra funding beyond the agreed funding envelope.
Crossrail Ltd is working to reduce the funding shortfall. Initially the shortfall will be covered by the Greater London Authority, which will borrow up to 825 million GBP from the DfT, which it will then hand over to TfL as a grant. The Greater London Authority will repay the funds from Business Rate Supplement and Mayoral Community Infrastructure Levy revenues.
The 825 million GBP loan is split into a 500 million GBP loan with a fixed repayment profile and a 325 million GBP loan that will be repaid subject to the relevant revenues. The government must make some legislative changes to enable this borrowing, which it says it will do.
TfL meanwhile is ensuring that additional independent analysis of costs takes place.
“Securing this financing package enables us to press full steam ahead with getting the central section of the Elizabeth line open as soon as possible. The Government have insisted London must pay the shortfall – despite the overwhelming majority of the tax income that will result from Crossrail going to the Treasury. This is another example of London supporting the country way over and above the help we get from this government. I do not want this project to be stalled so it is vital that we dig deep to get the railway up and running. I will continue to monitor progress closely and do everything I can to minimise costs – helping ensure London and beyond can enjoy its many benefits sooner rather than later.”
In October the governance of Crossrail was handed over to TfL.
“Delivery of the Elizabeth line is now in its complex final stages. Good progress continues to be made with completing the remaining infrastructure works so that we begin intensive operational testing, known as Trial Running, at the earliest opportunity in 2021. Many of the stations are now nearing completion and we will shortly commence an enabling phase for Trial Running which allows testing in the tunnels to be undertaken with an increased number of trains, further helping to build operational reliability. We are doing everything possible to deliver the Elizabeth line as safely and quickly as we can.”
