See more information about this guidance

Transparency data

DfT Government Major Project Portfolio data, September 2016 (CSV)

Updated 18 July 2017
Download CSV 41.6 KB

Project Name A14 Cambridge to Huntingdon Improvement Scheme A303 Amesbury to Berwick Down Airport Capacity Programme Crossrail Programme East West Rail Programme (Western Section) Great Western Route Modernisation (GWRM) including electrification High Speed Rail Programme (HS2) InterCity Express Programme (IEP) Lower Thames Crossing Feasibility M20 Lorry Area Midland Main Line Programme North of England Programme Rail Franchising Programme Search and Rescue Helicopters South West Route Capacity Shared Services Implementation Programme Thameslink Programme
Department DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT DfT
IPA Delivery Confidence Assessment (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the MPA Annual Report) Amber Red Amber Amber/Green Amber/Red Amber/Red Amber/Red Amber Amber/Red Red Amber Amber/Red Amber Amber/Green Amber/Red Amber Amber/Green
Description / Aims To improve the A14 which is a major national and inter-urban regional transport artery between Cambridge and Huntingdon to relieve congestion and support both national and regional economic growth Construction of twin-bored tunnel of at least 1.8 miles as the road passes Stonehenge coupled with a dual carriageway bypass for Winterbourne Stoke to link the existing dual carriageway section around Amesbury with the dual carriageway at Berwick Down. Project aims are: - To create a high quality route between the South East and the South West that meets future needs of traffic - To enable growth in jobs and housing by providing a free-flowing and reliable connection between the South East and the South West - To help conserve and enhance the World heritage site and to make it easier to reach and explore - To improve biodiversity and provide a positive legacy for nearby communities. The Airport Capacity Programme's scope encompasses the DfT activities required to enable a decision on a preferred scheme for increased airport capacity and then the DfT’s activities required for new capacity to be delivered, including in relation to policy development, surface access and risk mitigation. A significantly enhanced high-frequency rail service which will increase rail-based capacity in London, provide new journey opportunities and reduce congestion on the Underground. The East West Rail Western Section project will re-construct and upgrade a partly disused railway between Oxford, Aylesbury and Milton Keynes / Bedford allowing for the introduction of new passenger and freight services improving connectivity and journey times along the corridor to meet transport and economic growth needs. The Great Western Route Modernisation is an extensive programme undertaken by Network Rail and other key stakeholders to modernise existing infrastructure on the Great Western mainline - it will create faster more reliable services better stations and increased freight capacity. Modernising the route will improve the experience of everyone who uses it and stimulate economic growth in the south west and beyond. A new fully integrated high speed North-South railway Intercity Express Programme (IEP) will renew the UK's high speed train fleet on the Great Western and East Coast. Through franchise competitions IEP is a key means to deliver the passenger benefits from the associated upgrades including more capacity, improved reliability, reduced journey times and better environmental performance. The order supports a new manufacturing facility at Newton Aycliffe where a new highly skilled engineering workforce will process the carriage body shells that Hitachi produce in Japan and build and fit out the trains ready for passenger service. This has created over 900 new jobs and supports thousands more in the UK supply chain as over 70% of parts for the trains are from UK sources. IEP serves London to Bristol Cardiff Swansea Cheltenham & Worcester and London to Leeds Edinburgh & Aberdeen offering through-trains from non-electrified lines without the need to change or attach a locomotive. The project aims to solve the problems of traffic congestion at the existing Dartford Crossing and on local roads. In the first phase the project will identify feasible options for additional river crossing road capacity in the Lower Thames area and assess these against the Client Scheme Requirements (Version 2.8) which were agreed with DfT early in 2014. Public commitments to this work were given in 2014 by the SoS in response to the DfT consultation held in 2013. A permanent solution for Operation Stack in Kent. This includes the provision of up to 4,000 HGV parking spaces including safe access and egress from/to the M20 Motorway and associated technology and signage. The project has a high level of political interest. The project aims to resolve: 1. Improve journeys in Kent during times when Operation Stack is called due to service disruptions at the Channel ports. 2. Boost economic growth and opportunity in Kent which are affected during times of Operation Stack, including local businesses and tourism. 3. Provide a safe, secure, reliable and sustainable transport system in Kent during times of Operation Stack and service disruptions at the ports and taking in to account the projected increase in freight volume within the next decade by both Channel ports. In November 2015, Government announced £250m will be allocated for a lorry holding area to manage disruption from Operation Stack. A site at Stanford West was announced by the DfT Secretary of State in July 2015. However, the decision was subject to a Judicial Challenge in October 2016 The Midland Main Line Programme will reduce journey times, increase capacity for passenger and freight services and improve the passenger experience. It will reduce operating costs and the environmental impact of railway operations. The North of England Programme will improve the connectivity and capacity of the existing rail network across the north of England. This will improve services for passengers and bring economic benefit to the region To secure the provision of passenger rail services as set out under the Railways Act 1993 (as amended) by letting Rail Franchises. This is an ongoing programme of replacement and renewal of franchises, and the continual performance management of contracts, once signed. To manage the delivery of a Search and Rescue Helicopter contract for the provision of search and rescue helicopter services for the UK The programme will deliver increased capacity into and from London Waterloo during the busiest times of the day through: • Improvements to London Waterloo including the reopening of the Waterloo International, the lengthening of platforms 1-4 and improved passenger flows • Longer platforms for longer trains, at a number of stations on the Reading line • 30 brand new trains, providing 150 extra carriages, between London Waterloo and Windsor • New technology to make trains more efficient and improve punctuality • Improvements to depots and maintenance facilities to look after the network’s biggest ever fleet of trains. The Independent Shared Service Centre (ISSC1) was created in early 2013 when the DfT shared service centre was divested to arvato. A Framework Agreement based on a new, lower cost Agresso ERP platform was established. DfT transferred the ISSC1 Framework Agreement to Cabinet Office in October 2013 and Cabinet Office became Framework Authority. In 2013, four other government bodies agreed call-off contracts with arvato under the ISSC1 Framework. These were HM Treasury, DCLG, DCMS and the Civil Nuclear Constabulary.The original plan to migrate parts of the DfT family and OGDs on to the Agresso platform resulted in significant time delays and cost overruns. The DfT family was scheduled to have migrated by October 2014, followed by the OGDs due to go live by the end of 2015. By the end of 2015, the Maritime Coastguard Agency (MCA) – an agency of the DfT, had migrated on to Agresso, In November 2015, arvato approached HMG seeking to renegotiate the terms of their contract. Acting on behalf of the Framework Authority and OGDs, the DfT negotiated exit for the OGDs from their contracts and new Heads of Terms with arvato through which DfT became the sole recipient of services and replaced Cabinet Office as the framework Authority. The new terms became effective from 18 August 2016. A significantly enhanced high-frequency rail service which will increase rail-based capacity in London by 10%, provide new journey opportunities and reduce congestion on the Underground.
Departmental commentary on actions planned or taken on the IPA RAG rating. The project is on track and to ensure successful, timely delivery of the project, the Project Board continues to monitor progress. To improve the amber delivery confidences rating all actions given to the project have been completed from the 2016 IPA review. The red delivery confidence rating that was awarded at Gateway 1 reflects the complexity of the project. To improve this rating an action plan was put in place. A review of progress made against the recommendations was carried out in October 2016, in which the delivery confidence rating was upgraded to red/amber. The review team acknowledged the progress made by the project team but proposed a review of the delivery schedule, in light of the recent decision from HMT to adopt a Private Finance DBFM approach. The project team will ensure successful, timely delivery of the project by undertaking the recommendations proposed by the review team The Amber delivery confidence rating reflects the complexity of the Airport Capacity Programme (‘the programme’) in terms of the political, public, stakeholder and media interest as well as the significant dependencies with other environmental and transport programmes. The programme is at an early stage which is also reflected in the delivery confidence rating. Resources and governance arrangements are in place to progress the current phase of the programme. In parallel to development and consultation on a draft Airports National Policy Statement (NPS), we are also defining the approach to longer term delivery of a new runway, should the decision be taken to designate the NPS. The project is forecast to be completed within the funding envelope . The Department, as well as Transport for London, will continue to monitor costs and schedule (with the assurance of the Project Representative), to ensure that the project is delivered on time and within the funding envelope The project is progressing on schedule and on budget, with Phase 1 now complete with London Marylebone to Oxford Parkway services extended to Oxford on 12 December 16. Work is on-going on Phase 2, between Bicester / Milton Keynes and Aylesbury / Bedford, to ensure that services are delivered as soon as possible in Control Period 6. The Department has taken on board the feedback received from a recent IPA Project Assurance Review regarding the capacity of the teams in charge of overseeing the delivery of the enhancement portfolio. We are planning to strengthen the team in charge of the ‘Clienting’ role by adding supplementary dedicated programme management and technical/operational resources. In parallel, we are firming up the project governance and reinforcing the project quality processes Significant improvements have been made to the governance and programme management of Great Western Route Modernisation, leading to an integrated industry approach. Since Sir Peter Hendy’s report reset the cost and schedule baselines for the programme in November 2015, the Programme is delivering to time and budget, and the first new electric services on the Great Western Mainline have now been introduced. The recent National Audit Office and Public Accounts Committee reviews recognised the significant improvements made in programme management and governance over the last year, and the Department is currently implementing these reports’ recommendations to improve the programme further. Scope changes have been made to ensure that the entire Intercity Express Programme (IEP) fleet coming into service on the route will be able to run in both diesel and electric modes, providing more flexibility for how the electrification programme is scheduled The SRO notes the Amber Red assessment, which reflects the overall complexity of the project and should be seen in the light of the very significant progress made recently on all phases of the programme, as set out below. HS2 is in excellent shape and substantial progress has been made in all areas of the programme this year. The Hybrid Bill for Phase 1 received Royal Assent in February 2017, giving us powers to acquire land and construct the railway. Phase 1 has now moved into its delivery phase; enabling works have commenced, we are preparing to let the main civil works contracts for the construction of the railway and we have issued the first notices under the compulsory purchase powers to acquire the land. Following engagement with train manufacturers, we are also readying ourselves to launch the procurement for the rolling stock for the scheme. We have also issued a Prior Information Notice for a Master Development Partner to work with us on regeneration above and around Euston Station. Phase 2 has also progressed well, we are readying ourselves to deposit a hybrid Bill for Phase 2a prior to summer recess. The Secretary of State announced the route for Phase 2b and we have consulted on property compensation schemes. Given the revised electrification dates published in the Hendy Review, the Department has decided to ensure passengers benefit from the new trains as soon as possible and funded conversion of all GWR IEPs to bi-mode. The trains are scheduled to enter passenger service from Autumn 2017.  Although there were delays to the completion of the test site, train testing is progressing but requires continued attention to ensure successful delivery, hence the Amber rating. A Taskforce meets at least weekly and a Delivery Board weekly to track progress of activities reuqired to achieve October 2017. The project was given an amber/red delivery confidence rating. We have been working closely with the Department for Transport to make the Preferred Route Announcement (PRA) and to make significant progress with addressing the MPRG panel’s recommendations. The HE Project Team has taken onboard the Q2 IPA Narrative. The project team has been working on solutions that would help to address the concerns associated with the Judicial Review and allow further progress on the scheme. Start Date Original Baseline 25/11/2015 Start Date Latest Approved Baseline 30/01/2018 Project Closure (End Date) Original Baseline 20/01/2018 Project Closure (End Date) Latest Approved Baseline 30/11/2019 Costs and schedule continue to be closely monitored by the Department. Work has taken place on Reference Class Forecasting to strengthen financial and schedule forecasts, utilising external expertise. Currently external design assurance is being commissioned and undertaken to further strengthen confidence in the programme. The Outline Business Case for Key Output 1 (electrification to Kettering and Corby and capacity works) was approved in October 2016 and authority was also provided to continue to develop the plans for Key Output 2 (electrification to Sheffield and Nottingham). Substantial progress is being made in all areas of the programme this year. The Amber-Red assessment reflects the complexity and risk to the programme and its various delivery stages. The team have worked to address the cost pressures and programme delays on Phases 4 & 5 of electrification. Passenger benefits will now be delivered in phases to enable the fastest possible deployment of a series of major improvements to services across the North. Constructive working relationships have been established between the DfT, Network Rail, Rail North, delivery partners, customers and stakeholders. The Transpennine Route Upgrade is being developed in line with the new governance arrangements agreed with Network Rail in the Memorandum of Understanding (MoU) for enhancement projects. A Client Development Remit was issued in July 2016 which established a set of High Level Outputs. Network Rail is now developing a Single Development Option for December 2017 that will identify a list of interventions that deliver the High Level Outputs, allowing the DfT to make an investment decision in early 2018. Since Q2 the IPA have recognised the external challenges that the Programme faces, many of which are out of its control (including adverse developments in national PPM trends, market interest in bidding declines and the downward shift in revenue growth, counter to the trend over the last two decades). Despite the rating Passenger Services was praised for the significant progress that has been made over a period in the face of great scrutiny and a very significant workload. There are 11 recommendations that will now be taken forward including 2 critical recommendations around contingency planning and recruitment. Initial plans to respond to the recommendations are now being developed with the intention of holding an Assurance of Action Plan in summer 2017. All recommendations from the previous Gateway 0 in October 2014 were responded to and implemented in 2015. This includes the appointment of Directors accountable to the SRO, improvements to our Risk Process and developing our Programme Outcomes. The Rail Franchising Programme continues to deliver in line with the published schedule. Since Q2 we have made 1 franchise award following competition (East Anglia). This award will deliver significant benefits for passengers and higher returns to the exchequer. The East Anglia franchise was awarded in June, mobilised and begun in Oct 16. Key benefits of the new franchise include: • £1.4 billion investment to local rail services • 1,043 new, state of the art carriages between January 2019 and September 2020 to support the faster timetable, with a full programme of refurbishment for the current fleet in the meantime • at least 4 90-minute services (2 in each direction) between London and Norwich each weekday and 2 60-minute services per day between London and Ipswich • free Wi-Fi for all passengers on trains and at stations • automatic ‘delay repay’ for season and advance purchase tickets • tough new targets for operational performance levels at 93% - up from 89.7% currently • a host of new ticketing initiatives, starting in October 2017, including new offers for part time users and those who don’t travel every day We have developed commercial plans to make better use of the information we receive from a variety of sources so that we can: • Better anticipate and plan for changes in market conditions and more robustly plan for future franchise specifications • Be more informed and provide a better response to the annual business plans we receive from TOCS The Commercial Plans will provide • Strategic objectives planned for each franchise post-contract award, which will provide the basis for in-life management team’s performance objectives; • An overview and most importantly a critical analysis of core MI; • Planned policy activities requiring in-life Changes; • A focus for value add contract management activities, e.g. assessing benefits realisation following delivery of committed obligations; and The basis for future franchise specifications forming the basis of the Project Mandate The UK SAR Helicopter Programme is reaching the end of the transition phase. The final SAR bases to fold into the new UK SAR Helicopter Programme are at Stornoway, Lee-on-Solent and Shetland in 2017. These bases are currently operated under legacy Coastguard helicopter contracts. All indications are that the transition of these three remaining bases will happen on time and to budget. Since SAR services under the UK SAR Helicopter Programme started, HM Coastguard's new helicopters have responded to over 2,800 requests for assistance, and saved or assisted over 1,900 people. The amber/red delivery confidence rating reflected interface issues and risks related to the change of the franchise competition during the part-closure of Waterloo and interface issues with the retail project being developed. It is important to highlight that the IPA review team noted that the programme elements directly associated with delivery of infrastructure upgrades, rolling stock renewal was progressing well. Following the project re-scope in August 2016, DfT is the framework authority and the sole recipient of services from Arvato. As a consequence of the project re-scope, which sees a reduction in the value of the contract and the 'novel and contentious' nature of the project, the project has been recategorised as a Tier 2 investment and as such the project no longer reaches the threshold requirements for reporting to GMPP; the risk of the programme has therefore been reduced in line with the risk thresholds appropriate for Tier 2.  The Thameslink Programme is progressing to time. The key milestones achieved in this period include: the successful completion of Hornsey Depot which was declared practically complete on 20 July 2016 and taken into operational use by the operator Govia Thameslink Railway; the successful opening of the southern concourse at London Bridge station on 29 August 2016; and the substantial completion of the Charing Cross platforms at London Bridge station which are now in service. By 30 March there were 30 trains in services.
Project - Start Date (Latest approved start date) 01/09/2012 1/012/2014 01/07/2015 22/07/2008 31/10/2012 01/12/2011 28/02/2011 01/06/2005 30/05/2014 25/11/2015 01/01/2011 03/11/2011 26/03/2013 08/02/2011 16/07/2012 10/12/2010 01/07/2005
Project - End Date (Latest approved end date) 30/09/2021 01/06/2024 31/12/2029 31/12/2019 31/03/2024 31/12/2024 31/12/2033 06/02/2020 31/12/2026 20/01/2018 31/12/2024 31/12/2022 29/11/2029 08/09/2017 31/12/2019 01/06/2013 31/12/2026
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) The project started construction works in Autumn 2016 as planned and the site compound opened in January 2017. The scheme is also on track to be open for traffic by December 2020 Project is on track with the option selection process prior to a statutory pre-application public consultation planned for January 2018 as part of the Development Consent Order Process. The Road Investment Strategy (RIS) has set a challenging target of starting works within the first RIS period, i.e. prior to April 2020. This target can only be achieved if the project is publicly financed. A revised Private Finance delivery programme is being developed In October 2016 the Government announced its support for a new Northwest runway at Heathrow as its preferred scheme for delivering additional airport capacity in the South East. The end date of the programme has been amended to reflect the Airport Commission’s assessment of need for new airport capacity by 2030. This is also in line with the draft Airports NPS published in February 2017 which refers to development anticipated to be required by 2030. If the NPS is designated, Heathrow Airport Limited have stated in their ‘Statement of Principles’ (published in October 2016) that they expect to start operations in 2026 and this date may be revised as scheme planning progresses Crossrail Ltd report that the overall schedule and completion dates will be maintained. The Project Representative, who reports directly to the Department and Transport for London, provides ongoing assurance on the project schedule and will flag any potential deviation on the schedule to both Sponsors where corrective action can be taken. The overall schedule and completion dates will be maintained. Phase 1 was delivered on schedule in December 2016. We are looking at options to accelerate the delivery of the section between Bicester Village and Bletchley, and in parallel at potential synergies in the section where HS2 and East West Rail infrastructure works could impact each other. The programme is progressing to schedule, and all major milestones have been met since the Hendy replan of November 2015, such as the recent completion of the Intercity Express Trains test track between Reading and Didcot in September The project continues to make excellent progress against a challenging schedule. Phase 1: Royal Assent has been given to the Hybrid Bill which has given us powers to acquire land and construct the railway. HS2 Ltd has been appointed nominated undertaker for the scheme. We have started to acquire land to commence construction, with around 500 notices for access being issued in March 2017 to carry out surveys, together with up to 50 temporary possession notices. The first compulsory purchase order notices were served in April. Contracts have been let to undertake essential enabling works along the route, and we have started these works. The procurement process for main works contractors for the scheme has commenced and tender bids are being evaluated. Award of contracts is expected in summer 2017, following completion of the procurement process. We are also preparing to start the procurement of a Master Development Partner to create a scheme for the development of the wider Euston station area. Phase 2 Phase 2a Bill preparation is underway and the programme remains on track to deposit a hybrid Bill prior to summer recess in 2017. IEP is operating to a compressed schedule to deliver trains to GWR by October 17 following delays to completion of the test site and discovery of electrical interference issues. Many of these issues have now been resolved and the test programme is progressing but remains compressed and therefore risky The train build schedule and the depot works remain broadly on-track. There remain a number of challenging milestones associated with infrastructure compatibility and technical approvals which must be overcome to achieve type acceptance and entry into service of the first trains on the Great Western route which is currently planned for October 2017. NR's Chief Engineer is fully engaged to help resolve these issues. The project remains on target to achieve open for traffic by the end of 2025 if publicly financed. The Department for Transport is working with HM Treasury to assess the impact for private finance which, if used, could extend the overall programme by up to 2 years The Project is currently subject to Judicial Challenge which was lodged in October 2016 and validated by court in November 2016. A hearing is scheduled for December 2017. Construction works were initially planned to start in October 2016, then delayed to December 2016 due to detail design delays. Since the Judicial challenge was lodged, the project team has been exploring means to increase the confidence in delivery of the project by working on an alternative design. Electrification from London St Pancras to Kettering and Corby, as well as capacity works on the whole route is due to be completed in 2019. Plans for electrification of the rest of the route to Sheffield and Nottingham by 2023 continue to be developed. Key Programme delivery milestones remain challenging particularly on Phases 4 & 5 of electrification. The programme team are working with Network Rail, the Freight and Train Operating Companies (FOCs/TOCs) to maintain passenger benefits. Proactive management of rail franchise schedule led to the most recent issue (Dec 16) with several competitions being retimed. The retiming serves to reduce the contract award congestion in 2018, de-conflict the franchise competitions to maximise commercial interest, optimising market capacity , maintaining market confidence and ensuring Passenger Services are resourced to undertake multiple procurements. The retiming of the InterCity West Coast competition (ICWC) (now the West Coast Partnership (WCP)), which will incorporate the procurement of a shadow operator for HS2 into the franchise competition and was announced in Nov 16. This retiming will allow us to continue to engage with the market on the best options for the franchise to do this. A West Coast Continuation project is now underway to ensure there is no gap in service between the ICWC expiry date (Apr 18) and the start of the new WCP franchise (Apr 19) Also retimed were the South Western, South Eastern franchise and Great Western Franchise competitions. We currently have teams working on 5 live franchise competitions at various stages of completion. The programme is performing well against the plan. Seven out of the ten planned bases are now in full operation. The three remaining bases to transition are on track to do so at the point at which the legacy Coastguard contracts under which they currently operate end. The issues which were delaying the introduction of the smaller airframe type have been addressed an introduction of these aircraft will start to take place from April 2017. The delayed introduction of these aircraft has been mitigated throughout with the use of alternative aircraft from the contractor's fleet. The programme is on track to deliver the service changes expected in 2017 and 2018 The programme is currently on track with the rescoped plan agreed by Permanent Secretaries at DfT and Cabinet Office in August 2016. The Thameslink Programme is a circa £7bn project which will increase capacity and improve accessibility to, from and through the heart of London. The programme remains on schedule for completion in December 2018. Although good progress has been made on train delivery, infrastructure works at London Bridge station and the construction of two new depots, there remains a number of challenges relating to the delivery of the new timetable into service in December 2018 which includes agreeing the timetable, rolling stock acceptance testing and operational readiness. The IPA RAG rating for the programme remains unchanged from Q1 at Amber/Green The implenteation of a new corss industry delivery board and idnepenedent process is design to imporve readiness for 2018.
2016/17 TOTAL Baseline £m (including Non-Government costs) £106.30 £8.60 £14.00 £770.49 £72.50 £772.40 £928.62 £98.00 £35.60 £230.00 £263.20 £652.00 -£74.90 £207.60 £178.86 £20.20 £20.74
2016/17 TOTAL Forecast £m (including Non-Government costs) £131.90 £11.30 £9.00 £2,167.20 £69.10 £740.10 £928.62 £146.34 £26.62 £86.50 £256.50 £474.50 -£53.20 £193.50 £180.96 £9.90 £20.99
2016/2017 Variance %age 24% 31% -36% 181% -4% -4% 0% 49% -25% -62% -3% -27% -29% -7% 1% -51% 1%
Whole Life Cost TOTAL Baseline £m (including Non-Government costs) £1,492.30 £385.11 £79.00 £14,768.87 £1,592.00 £5,507.00 £55,700.00 £6,512.95 £199.10 £250.00 £2,620.00 £4,826.80 -£7,169.20 £2,157.40 £733.90 £161.10 £7,287.70
Departmental narrative on budget/forecast variance for 2016/17 (if variance is more than 5%) The variance in 2016/17 was due to an increased target which was agreed due to an accelerated programme for this project in the 16/17 financial year. The variance in 2016/17 was due to an increased target which was agreed due to an accelerated programme for this project in the 16/17 financial year. The variance in 2016/17 was due to changes in the phasing of work in this early stage of the programme. The programme’s initial programme budget and resource plan is subject to annual corporate planning, ongoing resource planning and spending reviews. The budget sets out when the funding is provided by Sponsors to Crossrail Ltd. The forecast describes when this budget will be spent. A variance between the two is to be expected and does not indicate an over or underspend. The Crossrail project is forecast to be completed on time and within the funding envelope. Budget variance less than 5%. Budget variance less than 5%. Budget variance less than 5%. The increase in variance is due to the testing delays and the approved bimode variation, which is required to enable diesel running on non-electrified sections of the Great Western route. This mitigates the programme delivery and benefits realisation impacts of the delayed Network Rail electrification works which are being delivered as part of the Great Western route modernisation. To ensure all consultation results and evidence was examined ahead of the PRA being made has seen expenditure reprofiled from 2016/17 to 2017/18 and 2018/19. As the project has been subject to Judicial Challenge, the largest variances are due to: 1. Land purchase delayed until JR outcome envisaged mid July 2017 2. Construction cost for permanent works which were initially forecasted to start in October 2016 Budget variance less than 5%. The reason for the variation has been a re-profiling of NR spend from the financial year 16/17 to 17/18. The figures above represent the revenue line from the Long Term Forecast (LTF) for the 3 franchise competition which was beyond the OBC stage (which coincides with the invitation to tender (ITT) and thus have financial figures). The baseline figures are based on an earlier version of LTF. Since the baseline figures were produced, the actuals were contracted, with lower than forecast premium in 16/17 and 17/18, but higher than forecast premium in the later years of the franchises. This has led to lower forecast figures in 16/17 than previously assumed in the LTF. This will be the last time that the costs will be represented this way. The department is reviewing how the franchise programme reports its financial data on the GMPP The forecast variance for 2016/17 is an underspend of nearly 7% versus budgeted costs. This is partly attributable to DfT and MCA’s management of the contract, negotiating reduced charges for contract variations and enforcing contractual terms where the contractor has not met performance criteria. Both DfT and MCA have also benefitted from favourable movements in variable costs such as the lower price of fuel and a lower than expected rate of inflation. Budget variance less than 5%. The variance shown above is the variance in relation to the original business case for divestment of the shared service centre. Whilst the divestment itself was successful the transformational IT programme ran into difficulties which led to the commercial negotiations Decemeber 2015 - August 2016. At this point the project was rescoped (see Project Description/Aim) and the costs were rebaselined. Budget variance less than 5%.
Departmental Narrative on Budgeted Whole Life Costs Currently the scheme has full funding approval of £1,435m. Estimates of whole life project cost forecasts will be included in the Strategic Outline Business Case for each of the short-listed routes. As the project is at an early stage, and delivery is in Road Investment Strategy 2, whole life budgets have not yet been set. The WLC figure in this report refers to programme and administration spend up to 2020/21 only and Government spend only. The expected timescale for delivery for new airport capacity is the mid to late 2020s so budgets are likely to be extended to cover that period. At present the numbers included are an early forecast. New Text: If the scheme at Heathrow goes ahead, the scheme itself is expected to be designed, built and funded by the private sector. This includes the cost of surface access schemes required to enable a runway to open. Government expects to share the cost of some of the surface access schemes with the private sector where a split of beneficiaries is expected, and the split of costs will be decided through the regulatory processes. Non-Government costs will be included as they are known. In the current phase of the programme, the administration and programme spend is expected to be made up Civil Service staffing costs, legal advisors, resources to undertake the consultation on the draft National Policy Statement and commercial and financial advisers. This constitutes the funding envelope for the project as a whole. There are a series of intervention points set out in the governance documents which are designed to mitigate against the risk of exceeding the total funding available. The aim of both Sponsors (DfT and TfL) is for final outturn costs to remain well within the total funding envelope. This total amount constitutes the funding envelope for the design and the infrastructure works, to be carried out by Network Rail and industry partners. As for any project of this nature, the amount contains some contingency associated with the remaining design uncertainties at this stage. The budget covers phase 1 for £308m and phase 2 for £1,284m. Rail investment period settlements are made in five year blocks. The budgeted whole life costs for this project includes the forecasts for this rail investment period (Control Period 5) and forecast cost for the next rail investment period (Control Period 6). The period for agreeing the settlement for Control Period 6 will not conclude until late 2018. The total cost of £5.5bn is based on costs of the Great Western Electrification Programme - £2.8 billion (includes Maidenhead to: Cardiff, Oxford, Newbury, Bristol Temple Meads) Other electrification £0.7 billion the Trains Infrastructure programme and Other Great Western Route Modernisation infrastructure £2.1 billion (includes Reading Station (£763 million), capability and capacity works for new trains (£258 million), Bristol area signalling (£228 million), track widening at Filton Bank (£91 million)) Rail investment period settlements are made in five year blocks. The budgeted whole life costs for this project includes the forecasts for this investment period (Control Period 5) and forecast cost for the next rail investment period (Control Period 6). The period for agreeing the settlement for Control Period 6 will not conclude until late 2018 In the 2015 Spending Review (SR15), Government restated the long-term funding envelope for the HS2 programme at £55.7bn in 2015 prices. This budget is for delivery of the full HS2 scheme including rolling stock. The SR15 settlement sets a year by year funding allocation for HS2 as a whole for a period of 5 years (2016/17 to 2020/21). Following the precedent set by Phase One, we expect to capitalise all expenditure following second reading of the Bills. Following the approved cost increase the budgeted WLC for IEP is £6.5bn. This comprises £480m for CP5 Network Rail infrastructure works and £6.02bn in respect of the new rolling stock and depots. The increase is attributed to payments for works required to mitigate the testing delays and the bi-mode variation. Further cost increases as a result of work on the unmuzzling variation and wider commercial contract negotiations. Costs to take the project through the development phase (including the costs of the options phase) are forecast to be £295.2m of which £157.8m falls in the RIS1 period. The project team has tasked the Contractor to undertake an estimate of the new design. Following this estimate being completed it is envisaged that the project remain deliverable within the £250m Government allocated budget. The stated cost is within the funding envelope for the programme as agreed following the Hendy Review in 2015. Rail investment period settlements are made in five year blocks. The budgeted whole life costs for this project includes the forecasts for this investment period (Control Period 5) and forecast cost for the next rail investment period (Control Period 6). The period for agreeing the settlement for Control Period 6 will not conclude until late 2018. The Network Rail baseline whole life cost for the programme is £4.827 billion in 2012/13 prices which includes an initial estimate for the delivery of Transpennine Route Upgrade (TRU) by the end of 2022. The TRU programme is in development and a decision on which options will be selected will be made in 2018. These figures represent only DfT High Level Output Specification (HLOS) allocations. External funding figures (e.g. third party contributions; renewal contributions; maintenance costs; additional rolling stock costs) have not been included. Rail investment period settlements are made in five year blocks. The budgeted whole life costs for this project includes the forecasts for this investment period (Control Period 5) and forecast cost for the next rail investment period (Control Period 6). The period for agreeing the settlement for Control Period 6 will not conclude until late 2018. Budget values are derived from v15.51 of the rail LTF amended for subsequent CP5 and other changes. Economic factors as most recent OBR projections. Forecast from rail LTF v June 2015. A significant policy change since the Q1 forecast is the change in fares policy for the years of 2015/16 to 2019/20 where the fare increase has been reduced from RPI+1% to RPI+0%. This change increasingly reduces farebox across all years. Lower inflation forecasts will have also reduced farebox although this will be partially offset by lower costs. Budgeted whole life cost of £2,157m represents the contracted cost for running the UK SAR Helicopter Programme from FY 2013/14 until the end of FY 2025/26, inclusive of non-recoverable VAT. The current forecast is in line with the current rail investment (Control Period 5) programme baseline. Rail investment period settlements are made in five year blocks. The budgeted whole life costs for this project includes the forecasts for this investment period (Control Period 5) and forecast cost for the next rail investment period (Control Period 6). The period for agreeing the settlement for Control Period 6 will not conclude until late 2018. The costs of the prgramme above reflect the historic programme scope pre-negotiation. The rescoped project costs reflect the revised programme and are managed at Tier 2 level within the Department.  Following the approved cost increase the budgeted Whole Life Cost for the Thameslink Programme is £7.2bn of which circa £5.05bn is Network Rail infrastructure costs, £2bn in respect of new rolling stock and Depots costs.