The opening of Crossrail is set to be further delayed until at least 2020, as costs spiral to almost £3bn more than the original budget
A fresh bailout was announced by the mayor, Sadiq Khan, and the Department for Transport (DfT), on 10 December. This includes loans of up to £2.05bn to London. It means the final costs for Crossrail could reach £17.6bn, instead of the £14.8bn it was predicted to cost as recently as June.
A review of the project by the new Crossrail chief executive, Mark Wild, has found that the planned opening in autumn 2019 – postponed just over three months ago – is no longer viable. A new opening date has yet to be set.
Vital elements of the infrastructure for the east-west rail line across the capital, including stations and tunnel interiors, have yet to be finalised.
Reviews by the accountancy firm KPMG of Crossrail’s financing and governance arrangements, commissioned by Khan and the Department for Transport (DfT), reveal the delay to completion would be likely to cost between £1.6bn and £2bn.
After the DfT and Transport for London (TfL) jointly injected an extra £300m in July, the government department will loan the Greater London Authority £1.3bn and a further £750m to TfL for contingencies. The GLA will also contribute an extra £100m cash.
Khan said: “It has been increasingly clear that the previous Crossrail Ltd leadership painted a far too optimistic picture of the project’s status.
“I have ordered the release of all Crossrail board minutes in the last five years to provide transparency to Londoners on their decision-making, and working with the DfT, brought in a new leadership team.
“With London’s population continuing to grow, our priority must be getting this monumental project completed as soon as possible, with Londoners enjoying all the benefits the Elizabeth line will provide.”
Tony Meggs, the chief executive of the Infrastructure and Projects Authority, was due to be approved as the new chair of Crossrail Ltd after Sir Terry Morgan quit.
TfL said that it was only just becoming clear how much work was left unfinished on the major infrastructure project, whose leaders had long advocated that it was being constructed on time and on budget.
Wild said it was “evident that there is a huge amount still to do”. He said his team was “working to establish a robust and deliverable schedule” before confirming a reliable opening date.
