The completion and sale of High Speed 1 PDF Download

Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102975482
Category : Business & Economics
Languages : en
Pages : 48

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Book Description
The High Speed 1 line was delivered within the overall funding and timescale available for the project. However, this was at a higher cost and later than its targets. Construction of the line cost £6,163 million,18 per cent higher than the target costs. Despite missing these targets, this performance compares well with other railway projects. The line has performed well since it opened, with only 0.43 per cent of services being delayed in 2010-11 by infrastructure incidents, such as track or signal failures. However, the number of international passengers using the line is lower than originally forecast. This left the taxpayer exposed to the risk of lower-than-expected passenger income, which had been expected to repay the project debt. London & Continental Railways Ltd (LCR), which is owned by the Department, is in partnership with private sector developers at King's Cross and Stratford where development is under way. The original business case in 1998 was based on benefits to transport users from faster journey times and increased rail capacity and regeneration benefits. The total value of these benefits is not known as the Department has started to identify the methods it will use to evaluate the project's costs and benefits. The Department has not reassessed these costs and benefits since 2001, despite assurances to the Public Accounts Committee that it would do so. Restructuring LCR before the sale removed open-ended taxpayer support and the line was made an attractive opportunity for investors. The Department handled the sale well and, at £2,048 million, the winning bid was higher than expected.