Presentation made by Simon Adams, Crossrail Ltd, United Kingdom, at the Symposium on Governance of Infrastructure held at the OECD, Paris, on 29 February 2016

1. Crossrail Governance
Simon Adams – Head of Commercial Crossrail 2

2. Header here max 30 charactersCrossrail – enabling London to grow
£14.8bn
cost
£42bn
net benefit
118 km
length
40 (10 new)
stations
24
Trains/hour
200m
journeys pa
Heathrow
Reading
Shenfield
Canary Wharf
The City
Paddington
Abbey Wood

3. Header here max 30 charactersTunnels Complete

4. Header here max 30 charactersSystems installation completes 2018

5. Header here max 30 characters
Funding – A partnership between Central and Sub-
national government.
£14.8bn
Other
(£2.45bn)
Network Rail
Others
Central Gov.
(£5.20bn)
London Gov.
(£7.15bn)
GLA
Business Rates
Community
Infrastructure Levy
TfL
Fares
Developers
Contribution
Property
redevelopment
Heathrow Airport
City of London
Dept. Transport
Direct Grant
Funding Model places London in first loss position, with Central Government the lender of
last resort.

6. Header here max 30 charactersConsiderations in developing the Governance Model
• Accountability and Authority:
• Provide clarity between the role of Central Government and London Government (“The
Sponsors”) and the delivery entity.
• Ensure the delivery entity has sufficient decision making authority, without reverting to
protracted government processes.
• Discipline, Transparency and Disclosure:
• Ensure a clear statement of project objectives and delivery parameters, with controls on
change.
• Ensure visibility of public expenditure and public procurements.
• Provide for independent assurance and oversight, without overburdening the project.
• Risk allocation and Value for Money:
• Ensure the clear and appropriate allocation of risk that demonstrates Value for Money.
A PPP structure met many of these objectives but scale, complexity
and market capacity limited the extent to which risk could be
transferred, and Value for Money achieved.

7. Header here max 30 charactersHybrid Model - Publicly Owned SPV
London Gov.
(SPV Owner)
Central Gov.
SPV
Crossrail Ltd
(Publicly Owned)
Funding Agreement
Development Agreement
Shareholder
Agreement
London Underground
Network Rail
Docklands Light Railway
Property Developers
Construction
Contracts
Concession for
Operations
Rolling Stock /
Depot
Industry Partner
Contracts
Operator
(Transport for
London)
Operating
Contracts
Oversight
Team
Sponsor
Board
Agreement

8. Header here max 30 charactersHas it worked?
• Continuity of funding and freedom from political interference.
• Sponsors have benefited from a high degree of disclosure, enabling a
relatively small team to maintain effective oversight.
• Contractual discipline has provided for role clarity, a clear allocation of
risk and very low levels of Sponsor change.
• Once authority was delegated to the SPV Board (following a series of
Review Points) it has allowed timely decision making.
• Crossrail is set to be delivered on time and within its funding envelope.
• Crossrail 2 is being planned, utilising the same Governance model.
“We found that the Department for Transport and Transport for London have
established governance and oversight arrangements that provide a clear
view of risks to their financial interest and to successful delivery of the
programme.” – National Audit Office Jan 2014.

9. Header here max 30 charactersCrossrail experience is captured in the IUK Project Initiation
Routemap - that links well to the emerging OECD Framework.
https://www.gov.uk/government/uploads/system/u
ploads/attachment_data/file/361175/Governance_
Module_30_Sept.pdf

10. Header here max 30 charactersMoving London Forward