Network Rail will have to sell off property assets worth £1.8Bn in order to fund its current rail improvement programme, the organisation’s chairman Sir Peter Hendy has confirmed.

 

Sir Peter published his review into Network Rail’s five year funding programme to 2019 alongside an updated Rail Upgrade Plan last week. 

 

He concluded that the majority of the programme can go ahead as planned with extra investment generated primarily from the sale on ‘non-core’ railway assets. The Government has also increased the limit of Network Rail’s borrowing by £700M.

 

This follows a recent report by the House of Commons’ Public Accounts Committee which highlighted that severe planning and budgeting failures had put delivery of promised network improvements in jeopardy.

 

Sir Peter said: “Working closely with the Department for Transport (DfT) we have ensured that no infrastructure project has been cancelled and the bulk of the investment programme will be delivered by March 2019.

 

“Some projects will cost more and take longer than originally expected but we will see the job through to deliver better journeys for passengers. My review has clearly found that the original plan was unrealistic and undeliverable.”

 

DfT is due to launch a consultation on the reports findings this month.

 

Chief executive of AECOM’s civil infrastructure business in Europe Richard Robinson said: “Against a backdrop of austerity, the additional funding available to Network Rail provides greater certainty for industry, which can only be a good thing for the economy.

 

“Attention must now be focused on delivery – but it’s more complex than shovels hitting the ground. All aspects of the delivery process must be explored to ensure speedy, high quality outcomes, from governance and procurement through to design and build.”

 

(Photo: Network Rail)