Network Rail has taken a hit of around £210m to its finances after the cost of its part of the late running and over-budget Crossrail project rose.
In a Written Parliamentary Statement issued late on Tuesday, former transport secretary Chris Grayling disclosed that ‘updated costings for Network Rail’s programme show that the costs are now forecast at around £2.8 billion’.
Some of Network Rail's Crossrail works
This compares with Network Rail’s original £2.3bn budget for improvements to its network, which was increased by £290m last year.
The disclosure that Network Rail’s costs have now reached £2.8bn suggests a further rise of £210m and means that it has now exceeded its original budget by half a billion pounds.
Mr Grayling said: ‘The additional costs are the result of some work taking longer than planned and have been managed by Network Rail from within its own internal budgets. No further funding has been provided from Government, and this has not had an impact on any other programmes.’
A Network Rail spokesperson said: ‘Network Rail’s works on Crossrail are over 90% complete and already delivering major benefits to passengers.
'However, there are some elements, including the delivery of some of the enhanced ticket halls and access improvements on the surface section, that are being delivered later than had been anticipated.
‘This has increased overall costs, however no additional government funding is required and the increase is being managed from within Network Rail’s own internal budgets.’
Giving MPs an annual update on Crossrail, Mr Grayling disclosed that the total expenditure incurred on the project as of 29 May was nearly £14bn, with £1.5bn of expenditure incurred in the last year.
The project is expected to cost around £17.6bn when completed, a £2.8bn increase on its 2010 budget of £14.8bn.
Crossrail Ltd has said the full railway, including the key central London section, may not open until 2022.
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