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DFT Government Major Project Portfolio data, September 2014 (CSV)

Updated 25 June 2015
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B C D E F G H I J K
Project name A14 Cambridge to Huntingdon Improvement Scheme Crossrail High Speed Rail Programme Intercity Express Programme (IEP) Periodic Review 2013 (Rail Investment Strategy - HLOS & SOFA) Rail Franchising Programme Search & Rescue Helicopters (SARH) Shared Services Implementation Programme Thameslink
Department DfT DfT DfT DfT DfT DfT DfT DfT DfT
MPA RAG rating (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/Green Amber/Green Amber/Red Amber/Green Green Amber Amber/Green Amber/Red Amber
Description / Aims (From GMPP data) The A14 Cambridge to Huntingdon Improvement Scheme will comprise: Huntingdon Southern Bypass (11.8 miles / 19km):A1 Trunk Road Improvements including Alconbury to Brampton:A14 Trunk Road Improvements (10.5 miles / 17km): .De-trunking of the existing A14 from Brampton Hut to Fen Drayton and from Alconbury interchange to Spittals. Overall Objectives, as agreed with DfT (and revised to omit references to tolling in light of the announcement on 03/12/13 that the scheme would not be tolled). a) To support and enhance the role of the current A14 between Cambridge and Huntingdon as a major national (Trans-European Network) and inter-urban regional transport artery. b) To develop the options from the DfT A14 study to provide additional capacity, increase journey time reliability, by improving and better managing traffic flow conditions, and ensure the safe and economic operation of the trunk road. c) To determine the optimal funding strategy taking account contributions from local authorities and partners. d) Is affordable whilst maximising the benefit/cost ratio and hence value for money. The Crossrail programme will deliver a new high-frequency rail service and supporting infrastructure for London and the South East.  A key part of this is the construction of twin tunnels, each 21km long, through the heart of Central London. When it opens (in stages from 2018) Crossrail will run from Reading / Heathrow in the West to Shenfield in the East / Abbey Wood in the South East. Crossrail will create economically-vital new transport infrastructure to support London’s growth, delivering faster journey times and providing an uplift in rail-based transport capacity. It will put an additional 1.5 million people within 45 minutes of London’s business centres, facilitating employment growth of up to 30,000 jobs by 2026 in Central London. HS2 is the Government project to build a new North-South railway. The case for the new line rests on the capacity and connectivity it will provide. We need this capacity because our railways are increasingly busy and in the future, as our economy and our population grows, we will travel even more. We need the connectivity because bringing people together drives economic growth. Our current transport system is already under strain and a constraint on growth. Among the many alternatives that have been considered – including new motorways and upgrades to the current rail network - HS2 is the best way of getting ahead of current demand on our core transport network. The new north-south railway is a long term solution to a long term problem. Without it the West Coast, East Coast and Midland Main Lines are likely to be overwhelmed. With it, we will transform intercity travel, radically improve commuter services into London and our other major cities and increase the amount of rail freight. These transport improvements will help support economic growth and make a major contribution towards rebalancing the economy. The new railway will be built in two phases. It will be fully integrated with the rest of the railway network. It will bring benefits to places with stations on the new railway including Leeds, Manchester, Birmingham and London; to stations on the classic network like Liverpool, Darlington and Newcastle which will receive high speed services; and to other places on the existing mainlines like Milton Keynes, Rugby and Peterborough which will have better services from released capacity on the existing main lines IEP serves London to Bristol, Cardiff, Swansea, Cheltenham and Worcester and London to Leeds, Edinburgh and Aberdeen. It offers through trains from non-electrified lines routes without the need to change or attach a locomotive. The programme is the means to deliver the outputs of the complimentary upgrades to the Great Western and East Coast routes and aims to reduce whole life/whole system costs. IEP will start to enter service in 2017 with all trains delivered by 2020. IEP is a flexible design that can be rolled out onto other routes in due course. IEP will deliver between 28 and 40% more peak seats, reduce journey times by around 20 minutes and deliver significant reliability improvements. As part of the Office of Rail Regulation's Periodic Review, Government is required to publish a High Level Output Specification (HLOS), setting out information about what the Secretary of State wants to be achieved by railway activities during Railway Control Period 5 (1 April 2014 to 31 March 2019); and a Statement of Funds available (SoFA), setting out the public funds that are or are likely to become available to secure delivery of the HLOS. This fulfils the statutory obligation required by paragraph 1D(1) of Schedule 4A to the Railways Act 1993 as modified by the Railways Act 2005. A major programme to secure the provision of passenger rail services as set out under the Railways Act 1993 (as amended). The Department seeks to appoint franchisees who will work in the context of partnership to support its aim of providing world class train services that drive economic growth, exceed passenger expectations and deliver sustainable value for money for passengers and taxpayers. Franchises are to be let on a rolling programme that will cover all passenger franchises let by Government to 2021. To manage the delivery of Search And Rescue (SAR) contracts for the provision of a search and rescue helicopter service to cover the entire UK search and rescue region. The UK SAR-H contract will replace the MCA contracted service, which runs to June 2017, and the MOD capability which is due to end in March 2016 when the Sea King fleet is due out of service. The UK Government is committed to a number of international agreements which require a national framework of search and rescue resources to be available within a geographically defined region, currently the service is jointly provided by the MOD at 8 bases and the MCA at 4 bases. The UK SAR-H programme aims to deliver the UK SAR service from 10 bases. The benefit of the service is to save lives. The Shared Services Implementation Programme (SSIP), follows on from the successfully completed work of the Shared Services Futures Project which facilitated procurement and contract award (February 2013) for the future provision of back office shared services functions to the Department for Transport (including its Executive Agencies). Following the latter procurement process, three preferred bidders were chosen in late 2011 and Competitive Dialogue started in February 2012. Dialogue concluded and final tenders were received, evaluated and Preferred Bidder announced in December 2012. The Full Business Case was approved by the DfT Board Investment & Commercial Committee (BICC), Ministers and HM Treasury by 15 February 2013. On 28 February, the contract was awarded to arvato (part of the Bertlesman Group). The SSIP is a key deliverable for the Next Generation Shared Services Programme (NGSS) which is managed by the Cabinet Office. This Programme is focused on the centralisation of transactional functions for Finance, HR, Payroll and Procurement into 2 Independent Shared Service Centres (ISSC).Divestment of the DfT SSC will form ISSC 1 (June 2013). The Shared Services Implementation Programme will facilitate a phased migration of DfT Business Units to the Provider's new solution, with all DfT Business Units initially scheduled to be on the new system by October 2014. The £6.5bn Thameslink programme will deliver faster and more reliable journeys for people and businesses and improve accessibility to, from and through the heart of London. The Thameslink Programme is comprised of three main elements: enhancements to Network Rail’s infrastructure; procurement of new depots and 115 Class 700 trains; and the setting up of franchise arrangements for running the passenger service on a new combined Franchise network.
Departmental commentary on actions planned or taken on the MPA RAG rating. Successful delivery is forecast with the constant monitoring of the key risks to delivery. All critical delivery areas have dedicated leaders and are resourced. A robust mitigation strategy has been developed to counter any legal challenge that might jeopardise works starting by the end of 2016. A risk management process is in place with an identified escalation process. The project underwent statutory pre-application public consultation which concluded in June 2014. A public consultation report is being produced outlining the results. Crossrail Ltd continue to forecast that Crossrail is on schedule to open on time, with services operating through the central tunnel from December 2018. The Department continue to scrutinise project costs and schedule performance to ensure the project remains on track. The Department's Project Representative's analysis indicates that Crossrail Ltd is still on target to deliver the programme to budget. On 18 July 2014, TfL announced MTR Corporation (Crossrail) Limited (MTR) as the winning bidder of the Crossrail Concessionaire competition. Operation of London Rail services on the Greater Anglia spur (Liverpool Street to Shenfield) in preparation for future Crossrail services which commenced from 31 May 2015. The Surface works delivered by Network Rail are now 42% complete and tunnelling is now complete. (May 2015). The High Speed 2 programme remains in a strong position and continues to make significant progress. On Resourcing: There has been significant progress on building capability in the programme as we transition towards the delivery phase. We have made key appointments to senior roles at DfT and HS2 Ltd including: • Simon Kirby, Chief Executive, HS2 Ltd – May 2014 • Alistair Kirk, Programme and Strategy Director, HS2 Ltd – September 2014 • Jonathan Crone, PMO Director, HS2 Ltd - January 2015 DfT and Network Rail and HS2 Ltd have each grown their project teams, bringing in the skills and capability required for the next phase of work. On Phase 1 Hybrid Bill and timetable: The hybrid Bill for Phase One (London-West Midlands) was deposited on time and achieved resounding support at its Second Reading in April 2014 with a majority of 452 to 41 demonstrating the strong cross party support for the scheme. Good progress has been made in hearing petitions and, by March 2015, 344 petitioners had been heard by the Bill Committee and a further 99 petitioners had withdrawn or will not appear on account of agreed changes or assurances received from the Secretary of State, along with 22 who were denied standing by the Committee. The Secretary of State announced in Parliament that the working assumption was that the Hybrid Bill would achieve Royal Assent in late 2016. A carry-over motion was successfully passed that will allow the Bill’s work to be carried over into the next Parliament. The target opening date for Phase 1 remains unchanged for 2026. On governance and the transition to the next phase: Governance arrangements have been developed to formalise tripartite working between DfT, HS2 Ltd and Network Rail. Board structures have been reviewed and the new structures have been operating successfully for some months. A Development Agreement was signed by DfT and HS2 Ltd on 8 December 2014 formalising the relationship between DfT and HS2 Ltd in developing and delivering the HS2 railway and associated work. A new client board, chaired by the SRO, has been put in place to manage the performance of HS2 Ltd against this Development Agreement. The creation of an integrated Programme Management Office, under the responsibility of the new HS2 Ltd Programme & Strategy Director, is in hand. We are making good progress on preparations towards construction: HS2 Ltd held two further supply chain conferences, in London on 17 October 2014 and in Manchester on 23 October 2014, to discuss the commercial opportunities with the supply chain and inform the procurement strategy and approach for the programme. Phase 2 (Birmingham to Manchester and Leeds) On 27 October 2014 Sir David Higgins released his second report on HS2, ‘Rebalancing Britain’. This confirming that the strategic goal for Phase Two linking Birmingham to Manchester and Leeds is right; the East Midlands and South Yorkshire stations are best for the regions and the existing network; a hub station at Crewe would serve the local region and the North West; Leeds station must match the city’s vision and its transport needs; and that work needs to continue on the best route for an East/West connection in the North (‘HS3’), how and when it could be constructed, and its cost. In response to Sir David’s report, the Government confirmed its commitment to the Y Network. The programme in now undertaking further work to consider the possibility of expediting the delivery of part of the Phase 2 route and the possibility of a hub station at Crewe. The Government expects to take decisions on this during 2015. The sponsor team continue to scrutinise project costs, risks and schedule performance to ensure the project remains on track. Depot, platform extension and gauge compatibility works continue. Newton Aycliffe and Stoke Gifford topped out. North Pole ready for use. Since March 2015, 2 trains have been delivered from Japan and have commenced testing. The programme completed in 2012. The Department is working to develop the programmes and projects to deliver the infrastructure and train service changes, and will consider lessons learned for the next Periodic Review in 2018. Since the autumn, a new Prior Information Notice and an updated schedule for the programme have been published on the gov.uk website; two franchises have been awarded; programme vacancies have been significantly reduced. Further, we have reduced recruitment turn around time by agreeing a single Efficiency and Reform Group approval that delegates procurement, award and extension of advisor approvals to the programme Senior Responsible Owner. Significant progress has been made specifically, the role of a formal programme director has now be created and has been recruited into. Formal risk reporting processes are in place and detailed bid evaluation plans have been produced for live projects. The UK SARH Programme is progressing against the plan. Bristow continues to work towards the construction of new bases, the delivery of airframes and recruitment/training of personnel. The first two bases, Inverness and Humberside, went live on the 1st of April and are fully operational. Operational delivery of the remaining bases remain on track and Bristow has, at the time of writing, taken delivery of seven of the larger airframe types ahead of schedule. Bristow has experienced challenges due to the late delivery of the smaller airframe type and, as a result, initiated a contingency plan. Despite the late delivery of the smaller airframe type, the contingency plan, which formed part of Bristow’s bid, will ensure that a SAR capability will be in place as each base goes live. The overall Programme schedule had been delayed due to issues identified during user testing of the system. However, since September 2014 good progress has been made, following an updated delivery plan introduced in August 2014. o The plan now focuses on moving a single business unit during the initial phase, rather than multiple migrations; o The introduction of more detailed contractualised arrangements for specification and delivery tracking of key products; and o improved task monitoring arrangements. There will be further refinement of the client migration model to minimise complications associated to later phases of the overall programme. The Department monitors the progress of delivery and budget on all elements of the Thameslink programme on a regular basis through various regular meetings with key delivery partners. Delivery of rolling stock is proceeding ahead of schedule with first train due to enter passenger service early in 2016. Three Bridges depot is on schedule to open in the summer. The Thameslink Southern Great Northern (TSGN) franchisee (GTR) is now in place and the franchise commenced in September 2014. Major infrastructure works at London Bridge were completed by NR on January 4th and the new South-eastern timetable started on 12 January 2015. Issues regarding train service reliability from London Bridge (Southern services) as a result of the infrastructure changes are being actively managed by industry working closely with the Department with a new passenger services timetable introduced in May 2015 on Southern and Thameslink routes.
Project - Start Date (Latest approved start date) 01/09/2012 22/07/2008 28/02/2011 01/06/2005 17/08/2011 26/03/2013 08/02/2011 10/12/2010 01/07/2005
Project - End Date (Latest approved end date) 30/09/2021 31/12/2019 31/12/2033 06/02/2020 31/07/2012 31/12/2022 08/09/2017 01/10/2015 31/12/2018
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) Pre application consultation was held in April and concluded in June 2014 which was earlier than originally baseline. Submission of the Development Consent Order application was re-scheduled to the end of 2014 to allow for the inclusion of design changes identified as a result of feedback from the public consultation and to allow for changes and revisions in traffic model data. Project is on track to be open for traffic by end 2020. The Crossrail programme is on schedule. Crossrail services are on track to be fully operational from December 2019. Beyond this, as with all projects there will be some project close down activities that have been planned to be completed in 2020 The programme has made excellent progress against plan since September 2014. In addition to the achievements set out above, we have accomplished the following: Phase 1 • High Speed Rail Phase One Hybrid Bill – Following the deposit of the Hybrid Bill in November 2013 an Additional Provision (AP), proposing 55 minor amendments, was deposited on 10 September 2014. Progress on petitions against the Hybrid Bill and AP is on schedule with 344 petitioners having been heard by the Bill Committee by March 2015 and a further 99 petitioners withdrawing, along with 22 who were denied standing by the Committee. The rate of hearings are set to increase during 2015. Preparing for Delivery • Development Agreement - On 8 December 2014, DfT and HS2 Ltd signed a Development Agreement for the HS2 project. The Agreement provides clarity over roles and responsibilities of the two organisations: DfT as sponsor and client and HS2 Ltd as adviser and delivery body. Land and Property • HS2 property compensation package – On 16 January 2015 the Secretary of State announced the Government’s package of measures to help owner occupiers along the line of route for Phase One of High Speed 2, from London to the West Midlands. • Residents’ Charter & Commissioner – 16 January 2015 also saw HS2 Ltd launch a Residents’ Charter to help ensure that residents are treated in a fair, clear, competent and reasonable manner. A new Residents’ Commissioner overseeing the charter, Deborah Fazan, will ensure that HS2 Ltd meets its commitments set out in the new charter. • Strategic Environmental Assessment Judgement – On 25 November 2014 the Court of Appeal found in the Government’s favour by agreeing with the High Court’s previous judgment that a Strategic Environmental Assessment (SEA) was not required before making safeguarding directions to protect the planned route for Phase One of HS2. The Government has now won 20 out of 21 judicial challenges to the project. • Safeguarding the Route between Fradley and Crewe - The consultation on safeguarding the route between Fradley and Crewe was launched on 4 November 2014 and closed on 6 January 2015. 105 responses were received, which are being analysed to support a ministerial decision later this year. Wider Benefits • Growth and Regeneration – The Growth Taskforce published its report ‘HS2: get ready’ on 21 March 2014. This set out a number of recommendations on ensuring the whole country shares in the job and business opportunities HS2 will deliver. ‘Getting set for HS2: responding to the HS2 Growth Taskforce’ was published on 24 July 2014 setting out how Government and HS2 Ltd will work with local areas and businesses to ensure the wider economic growth benefits of HS2 are maximised. The recommendations have been progressed and, as part of this, Greater Birmingham and Solihull were awarded funding for 2015/16 to support the development of local plans for HS2-related growth/connectivity. The Intercity Express Programme is on schedule to deliver new trains to agreed timescales. We are continuing to work closely with Network Rail and other Partners to ensure delivery of trains into service from 2017. Schedule is complete The programme is on schedule. Due to unforeseen issues, a change from the infrastructure plan has occurred due to the closure of Manston Airport, the tendered solution for SAR cover in the SE of England. Lydd Airport, meeting the MCA’s requirements, has been identified as an alternative location. There is no impact of the service start date at this location. The MCA and Bristow continue to work closely towards the construction of new bases, the delivery of airframes, the recruitment and training of personnel. Major Milestones achieved include; Inverness SAR base construction– Complete; Humberside SAR base – Complete; Delivery of Large Airframe #1-7 – Complete. Delivery of Smaller Airframe Type #1 – Complete; Recruitment – Complete. The remaining programme deliverables will be subject to continuing close supervision and monitoring. The Thameslink programme is on schedule for completion in late 2018. All the key elements are progressing to time.
2014/2015 Budget (£million) £23.50m £1083.50m £380.01m £4.00m £3164.93m -£2.60m £0.00m £21.70m £40.70m
2014/2015 Forecast (£million) £17.49m £1083.50m £483.01m £5.01m £2764.10m £3.30m £0.00m £23.91m £36.64m
2014/2015 Variance (£million) -£6.01m £0.00m £103.00m £1.01m -£400.83m £5.90m £0.00m £2.21m -£4.06m
2014/2015 Variance %age -26% 0% 27% 25% -13% -227% 0% 10% -10%
Total budgeted whole life costs (£million) (including non-government costs) £1,519.32m £14,714.37m £42,559.51m £1,308.35m £16,840.61m £134.20m £1,923.00m £222.27m £4,897.82m
Departmental narrative on budget/forecast variance for 2014/15 (if variance is more than 5%) The forecasts reflect the current known activities. Reforecasting is currently ongoing due to additional design changes to incorporate consultation feedback, and additional design work being brought forward to support an accelerated programme. The year end position is expected to increase closer to budget. The project will continue to monitor forecast costs against budget in line with the Highways England internal governance and financial procedures and address any issues that may be identified. Budget variance less than 5% The forecast (CDEL) overspend of £103.0m is a reflection of a number of property acquisitions identified on the 2014/15 critical path to construction, following advances in design refinement and stakeholder engagement since the DfT £150m property budget was set in 2010. This in-year overspend does not affect the total cost of HS2. We are on track to deliver the programme within both budget and schedule. The overall programme is 5.7 billion at 2009 prices. We exepct to make some savings following our refinancing exercise in 2015. The BUDGET provided is based on the Secretary of State's Statement of Funds Available (SOFA) which was published in July 2012 as part of the Control Period 5 HLOS. The FORECAST provided is based on the current net resource and capital position, based on the most up-to-date Long Term Forecast for Rail, at the time of reporting. The resource FORECAST is based on the in year Support for Passeneger Rail Services position, which has improved significantly as a result of increase in revenues. The capital FORECAST is based on the Office of Rail and Road Final Determination from 31 October 2013. The Determination sets out the amount of capital grant the DfT provides to Network Rail in 2012/13 prices. This is inflated using the latest Office for Budget Responsibility indicators to produce the forecast. The amount of grant Network Rail receive in each year of Control Period 5 is recalculated in this way annually and detailed in the Deed of Grant. As such, inflation risk remains. The return for 2014-15 relates solely to the East Coast franchise where the successful franchise award at the end of 2014 provided a higher franchise premium than budget. Budget variance less than 5% Financial variance has resulted from the re-planned timelines for delivery of the various tranches of migrations to Shared Services, brought about by the client readying of the systems solution and the testing of that system by migrators to determine the change management impacts and internal training requirements to adopt the new procedures and procedures. The consequence has been that individual DfT business units have had to maintain their respective project delivery team longer than originally intended, but these relatively minor costs have been off-set by negated operational running costs of the new system, which are proportionately higher for the initial migrations. The reduction in expenditure is as a result of an agreed re-phasing of work by Network Rail on the Hornsey depot. The 40.7m number above is the Departmental spend as part of the suite of agreements for depot funding. Other rolling stock and depot costs, franchise costs and Network Rail costs are not included.
Departmental narrative on budgeted whole life costs The Whole Life Cost Budget CDEL funding includes an allocation for the A14 over a 6 year period from 2015/16 to 2020/21 and accords with the Highways England bid and confirmed settlement as part of spending round 2013 (SR13). The total for that period included in the bid for the A14 was £1.489bn and will not change. The Highways England funded development costs for 2013/14 and 2014/15 from within its SR10 funding allocation, from savings across the portfolio. Cost included in the whole life cost is the expected capital of the Crossrail programme excluding rolling stock and depot contract The 2013 Spending Round provided the long term certainty required to build HS2 by setting a funding envelope of £42.6 billion (in 2011 prices excluding VAT). This provided a clear funding envelope within which the Government will aim to deliver HS2. In order to ensure the project can start construction in the next Parliament, the Government has set a detailed budget for HS2 from 2015-16 to 2020-21 of over £16 billion. The Government has learned from the successful delivery of the London 2012 Olympic Games, and is setting a cost control framework to ensure the project remains affordable to the nation over the coming two decades. Sir David Higgins' first report ‘HS2 Plus’, published in March 2014, confirmed that the cost estimates for constructing Phase One are right and that any savings should be used to protect the contingency at this early stage. Intercity Express Programme (IEP) is a £5.7 billion combined programme that will see new trains enter service on both the great Western Mainline (GWML) from 2017 and East Coast Mainline (ECML) from 2018. DfT signed a contract with the Agility Trains consortium to supply new trains on the GWML in July 2012. ECML negotiations reached commercial close in July 2012 and achieved financial close in April 2014. Network Rail infrastructure compatibility upgrades for the IEP are identified in the strategic business plan and are reported against on a monthly basis. The BUDGET provided is based on the Secretary of State's Statement of Funds Available (SOFA) which was published in July 2012 as part of the CP5 HLOS. The improvement on budget across the period of this return reflects the substantially higher than budgeted franchise premium contracted under the East Coast award towards the end of 2014. Offsetting this, it is expected that there will be slightly higher than expected costs in the forthcoming re-lets of the Northern and TPE franchises. Budgeted whole life cost [of £1,923m] is the headline cost figure [£1.6bn] for the contract plus the associated non-recoverable VAT. This represents a significant saving against the previously reported whole life cost figure [of £3,286m] as a result of the procurement strategy requiring a shift away from a PFI-negotiated contract to a contract procured under the Competitive Dialogue process. Contract costs will only be incurred once operational delivery commences in April 2015. The Financial benefits have been calculated by taking the cost of services if the Shared Service centre remained in DfT ownership (Budget) and cost for core service under the divestment case (F/C) and comparing the difference. There are a number of benefits which have not been monetised in the business case including avoided costs, for example MCA would need to spend c£6m to upgrade its IT system if it did not migrate to ISSC1. Soft benefits have not been monetised. The remainder is the aggregate costs over the remaining 5 years The whole life cost represents spend during the construction period. Previous reports included lease payments for rolling stock which have now been excluded as the project is expected to be cash positive during its operational period.