Member Article

Network Rail 'lost its grip' on projects as cost of electrification doubles

According to a report by the Public Accounts Committee, Network Rail has ‘lost its grip’ on large infrastructure projects, highlighting the surging cost estimate of electrification of the Great Western rail line between London and south Wales.

The report raised concerns about ongoing investment into rail projects in the UK and called for a review of the industry’s regulator, Office of Rail and Road (ORR).

The estimated cost of electrification of the Great Western railway line has increased to £2.8bn from £1.6bn in just 12 months.

PAC chair Meg Hillier said: “Network Rail has lost its grip on managing large infrastructure projects. The result is a two-fold blow to taxpayers: delays in the delivery of promised improvements, and a vastly bigger bill for delivering them.”

The committee questioned the role of the ORR, saying that the Department for Transport should reconsider its future. The report concluded that Network Rail’s 2014-19 investment programme could never have been delivered within budget.

Ministers had been accused of deceiving the public when the overhaul of the Midland Mainline and Transpennine routes were put on hold just weeks after the general election. Transport Secretary Patrick McLoughlin went on to order the work to resume, after a review.

In response to the report, the Department for Transport said that “lessons should be learned on all sides.”

This was posted in Bdaily's Members' News section by Ellen Forster .