Short-term loan agreed after 拢15bn project delayed by up to a year
The government today announced it has pumped 拢350m into Crossrail to keep the 拢15bn project on track after it was revealed in August the high profile transport scheme was likely to be delayed by up to a year.
Described by the Department for Transport as an 鈥渋nterim measure鈥�, the loan will take the form of short-term repayable financing made available to the Mayor of London鈥檚 office for the remainder of the current financial year.
鈥淭his will ensure that full momentum is maintained behind Crossrail,鈥� the government added.
Crossrail Limited, the company building the 73-mile line across the capital and which is owned by Transport for London, said on 31 August the schedule had been 鈥渞evised to complete the final infrastructure and extensive testing required鈥� after problems emerged with trialling vital software.
Mayor of London Sadiq Khan came under fire after reports claimed he had known about the likelihood of a delay as early as July.
The Financial Conduct Authority is considering an investigation into what TfL knew about any delays and when.
The government said it was in talks with TfL 鈥渁s to how any additional funding will be provided, with London 鈥� as the primary beneficiary of Crossrail 鈥� bearing any additional costs via a financing arrangement鈥�.
TfL and the Department for Transport have commissioned an independent review of Crossrail鈥檚 governance and a separate review on Crossrail鈥檚 finance and commercial position, ministers said.
When opened late next year, Crossrail will eventually carry up to 200 million passengers annually.
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