Crossrail Governance - Simon Adams, United Kingdom

Crossrail Governance - Simon Adams, United Kingdom

• 1.
  Crossrail Governance Simon Adams– Head of Commercial Crossrail 2
• 2.
  Header here max30 charactersCrossrail – enabling London to grow £14.8bn cost £42bn net benefit 118 km length 40 (10 new) stations 24 Trains/hour 200m journeys pa Heathrow Reading Shenfield Canary Wharf The City Paddington Abbey Wood
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  Header here max30 charactersTunnels Complete
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  Header here max30 charactersSystems installation completes 2018
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  Header here max30 characters Funding – A partnership between Central and Sub- national government. £14.8bn Other (£2.45bn) Network Rail Others Central Gov. (£5.20bn) London Gov. (£7.15bn) GLA Business Rates Community Infrastructure Levy TfL Fares Developers Contribution Property redevelopment Heathrow Airport City of London Dept. Transport Direct Grant Funding Model places London in first loss position, with Central Government the lender of last resort.
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  Header here max30 charactersConsiderations in developing the Governance Model • Accountability and Authority: • Provide clarity between the role of Central Government and London Government (“The Sponsors”) and the delivery entity. • Ensure the delivery entity has sufficient decision making authority, without reverting to protracted government processes. • Discipline, Transparency and Disclosure: • Ensure a clear statement of project objectives and delivery parameters, with controls on change. • Ensure visibility of public expenditure and public procurements. • Provide for independent assurance and oversight, without overburdening the project. • Risk allocation and Value for Money: • Ensure the clear and appropriate allocation of risk that demonstrates Value for Money. A PPP structure met many of these objectives but scale, complexity and market capacity limited the extent to which risk could be transferred, and Value for Money achieved.
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  Header here max30 charactersHybrid Model - Publicly Owned SPV London Gov. (SPV Owner) Central Gov. SPV Crossrail Ltd (Publicly Owned) Funding Agreement Development Agreement Shareholder Agreement London Underground Network Rail Docklands Light Railway Property Developers Construction Contracts Concession for Operations Rolling Stock / Depot Industry Partner Contracts Operator (Transport for London) Operating Contracts Oversight Team Sponsor Board Agreement
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  Header here max30 charactersHas it worked? • Continuity of funding and freedom from political interference. • Sponsors have benefited from a high degree of disclosure, enabling a relatively small team to maintain effective oversight. • Contractual discipline has provided for role clarity, a clear allocation of risk and very low levels of Sponsor change. • Once authority was delegated to the SPV Board (following a series of Review Points) it has allowed timely decision making. • Crossrail is set to be delivered on time and within its funding envelope. • Crossrail 2 is being planned, utilising the same Governance model. “We found that the Department for Transport and Transport for London have established governance and oversight arrangements that provide a clear view of risks to their financial interest and to successful delivery of the programme.” – National Audit Office Jan 2014.
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  Header here max30 charactersCrossrail experience is captured in the IUK Project Initiation Routemap - that links well to the emerging OECD Framework. https://www.gov.uk/government/uploads/system/u ploads/attachment_data/file/361175/Governance_ Module_30_Sept.pdf
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  Header here max30 charactersMoving London Forward