Network Rail chief executive Mark Carne admits overspend during grilling by MPs yesterday
Network Rail chief executive Mark Carne has admitted that the cost of electrifying the Great Western Main Line has increased by over 拢1bn.
It came as Carne faced questions from MPs on the Public Accounts Committee yesterday as part of its ongoing inquiry into overspend and delays on Network Rail鈥檚 Control Period 5 development programme.
Carne revealed the cost of the electrification of the Great Western route had nearly doubled from 拢1.6bn a year ago to between 拢2.5-2.8bn today.
He gave three reasons for the increase, which were 鈥渋nadequate planning and scope definition鈥� in the early phases of the project, as well as 鈥減oor cost estimating鈥� and a change in the 鈥渋ntended flexibility of the regulatory regime 鈥� post the reclassification of our debt.鈥�
Carne said the cost increase was 鈥渆xtremely disappointing.鈥�
Carne鈥檚 revelations came during the inquiry, in which Office of Rail and Road chief executive Richard Price and Department for Transport permanent secretary Philip Rutnam were also grilled on their roles in CP5.
When asked if the 拢900m-plus cost overrun on the Great Western electrification was due to Network Rail鈥檚 inefficiencies, chief executive of the Office of Rail and Road, Richard Price, declined to comment specifically.
However, he said: 鈥淲e believe that had this been planned in a different way and had the risks to the programme that we had all identified early on been addressed, we would be in a different position.鈥�
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