Calls for an independent inquiry into the collapse of a High Speed 2 contract over concerns of a possible conflict of interest involving delivery partner CH2M have been rejected by the Transport Secretary.

 

Chris Grayling was urged by two Members of Parliament – one from each side of the House of Commons  – to hold an inquiry into what went wrong on the £170M contract for delivery of phase 2B of the rail scheme from Crewe to Manchester and from Birmingham to Leeds.

 

High Speed 2’s chief executive Mark Thurston was previously a director of CH2M and the project’s former interim chief executive Roy Hill was seconded from the company.

 

CH2M chief executive Jacqueline Hinman wrote to High Speed 2 Ltd chairman David Higgins last Wednesday to formally withdraw its interest as development partner for phase 2B, amid what it acknowledged as “protracted delays and ongoing speculation”.

 

A spokesman for CH2M said it had “demonstrated all appropriate measures” to ensure “the integrity of the procurement process” but took the decision to withdraw from the scheme to “alleviate any further delays” which could lead to increasing costs for the firm and UK taxpayers.

 

In the House of Commons last Thursday the Conservative MP Cheryl Gillan called on the Transport Secretary not to issue further contracts to other bidders on the scheme before there has been “a full inquiry into the decision making processes” involving HS2 Ltd and CH2M.

 

Chris Grayling responded: “CH2M has done the right thing in taking a step back, having identified a problem that would have called into question whether it could and should operate the contract.” He added: “We will have all the necessary governance in place as we go through the process of replacing CH2M.”

 

Labour Shadow Transport Secretary Andy McDonald later remarked: “This whole business stinks to high heaven and the Department for Transport must urgently address the key questions. When did it know about these substantial conflicts of interest and what due diligence did it do on the bid?”

 

High Speed 2 announced in February its intention to award the phase 2B delivery partner contract to CH2M. The client is now understood to be in discussion with rival bidder Bechtel in taking forward phase 2B. Bechtel declined to comment when contacted by TP Weekly News.  

 

Another bidder Mace had questioned the fairness of the procurement process shortly after CH2M was named as delivery partner on the contract. Mace had threatened to bring a case to the High Court and held talks with HS2 Ltd on Friday.

 

A spokesman for the company called for the whole tender process to be looked at again, adding: “We continue to closely review our next steps with our legal team. Don’t rule anything out.”

 

A High Speed 2 spokesman said: “We are still 100% content of the robustness of the process. This will not have an impact on the timescale for delivery of the scheme.”

 

In a further development it has emerged that High Speed 2’s director general David Prout has resigned to become Oxford University’s Pro Vice Chancellor for planning and resources.

 

(Image: HS2)