During the passage of the Crossrail Act through Parliament, a commitment was given to Parliament that a statement would be published at least every 12 months until the completion of the construction of Crossrail, setting out information about the project’s funding and finances.
In line with this commitment, I am therefore publishing this statement within 12 months of the previous statement, which was published on 16 July 2009, and set out below the information required to fulfil the commitment to Parliament:
Total funding amounts provided to Crossrail Limited by the Department for Transport and TfL in relation to the construction of Crossrail to the end of the period (22 July 2008 to 29 May 2010)
Expenditure incurred (including committed spend not yet paid out) by Crossrail Limited in relation to the construction of Crossrail in the period (31 May 2009 to 29 May 2010) (excluding recoverable VAT on land and property purchases)
Total expenditure incurred (including committed spend not yet paid out) by Crossrail Limited in relation to the construction of Crossrail to the end of the period (22July 2008 to 29 May 2010) (excluding recoverable VAT on land and property purchases)
The amounts realised by the disposal of any land or property for the purposes of the construction of Crossrail by the Secretary of State, TfL or Crossrail Limited in the period covered by the statement
The numbers above are drawn from Crossrail Limited’s accounts. The expenditure incurred amount includes both committed spend that has not yet been paid out and monies already paid out in the relevant periods.
Crossrail will support economic growth for London and the UK, and, as the coalition agreement made clear, is supported by Government. Recent work to update the business case indicates that the project will generate high value for money.
At this relatively early stage in the project, with several of the main construction contracts currently out to tender, Crossrail Limited continues to forecast a range of possible out-turn costs which indicate that the project can be delivered within the available funding. To ensure that these costs remain affordable and that every pound spent on Crossrail offers value for money, Crossrail Limited are engaged in an ongoing programme of value engineering, risk avoidance and mitigation and indirect cost reduction. I expect this work to report later in the year.