So far, Section 2 has been delivered to programme but its cost looks likely to increase slightly the call on the access charge loan
3.26 To date, progress of construction activities has met expectations, with key milestones along the route attained as follows:
■ all civil engineering works at Ebbsfleet and in the Thames Valley are now complete including the 1km viaduct structure at Thurrock and the installation of piled slab-work across the Rainham Marshes. The route was handed over to the track-work and signalling contractors on schedule. The shell of the new international station at Ebbsfleet is complete;
■ all tunnelling along the Section 2 route is complete with over 20km of twin bored tunnels completed on or ahead of programme;
■ a 1km long and 50m wide reinforced concrete box housing station platforms has been constructed below ground level at Stratford and the shell of the new international station building is complete;
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The higher the cap on overrun sharing arrangements, the longer the project manager's interest in finding cost reduction measures is preserved. |
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Bands for sharing cost overrun
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1 Project Manager will not benefit from finding cost reduction measures and so rationally will not seek them out. |
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■ works in the King's Cross Lands are well-advanced. Major bridges across the East Coast Main Line and the Midland Main Line were slid into place on programme;
■ the St Pancras Interim Station was opened on schedule in April 2004 allowing works to build a new underground Thameslink station to commence on schedule in September 2004. The scheduled works were completed within the programmed 34-week suspension of the Thameslink service;
■ work on the Grade I listed Barlow Shed at St. Pancras is underway. The work has proved to be difficult but solutions to the technical issues have been identified; and
■ Trackwork is well advanced and signalling installation has commenced.
3.27 The Department and LCR expect that the final cost of Section 2 will exceed the target cost. LCR attributes most of the increase to the effect of railway-related inflation being greater than that assumed in 2001 at the outset of the Section 2 project. Once inflation is removed, LCR expects that the cost of Section 2 will be within a few percentage points of the target. For the taxpayer, the cost overrun on Section 2 that is not absorbed by the Cost Overrun Protection Programme would, under current arrangements, ultimately flow through to amounts drawn down under the access charge loan facility.