Boris’ Crossrail Tax
- Boris Johnson has proposed a levy, or supplemental sc106 agreement charge on office developments within the Central Activity Zone, a 10 sq mile area around Westminster.
- The plan, due for public consultation in April 2009, plans a surcharge of £19.80 psq ft charge on developments over a threshold of 5,382 sq ft (500 sq m), to help fund the Crossrail project.
Transcend Appointment
- “Transcend”, a JV between AECOM, CH2M Hill and Nichols Group has been announced as the Programme Partner for the Crossrail scheme. There had been press speculation that the contract, worth £100m, would be awarded to “Legacy 3” a JV of Parsons Brinckerhoff, Balfour Beatty and Davis Langdon. A Bechtel/ Halcrow/ Systra JV had also been short-listed.
- Transcend will take the overall management of the scheme on behalf of Cross Rail Ltd, and are responsible for delivering the project within budget and on time.
Bechtel Appointment
- The £400m contract for role of Project Delivery Partner has been awarded to a consortium of Bechtel, Halcrow and Systra. Bechtel will be managing the design and delivery of the two 21km underground tunnels, starting near Paddington and ending at Stratford and Custom House respectively.
- These teams have previously contributed to the tunnel boring, construction and delivery of the Jubilee line extension, Paris’ RER Network, and High Speed 1 (The Channel Tunnel Rail Link).
- Network Rail will be announcing the partner for the construction of the overland sections on 8th April.
Rob Holden Appointment
- Rob Holden has been appointed as chief executive of Crossrail, effective from 1st April 2009. Holden brings a wealth of experience including the delivery of High Speed 1 and the restoration of St Pancras station.
Tottenham Court Road Acquisitions
- The possession of properties to be demolished to facilitate the development of the new Tottenham Court Road station started in late January 2009. The properties stand over the current station entrance at the corner of Oxford Street and Charing Cross Road, including The Astoria theatre.
Funding:
Canary Wharf Group
The group will contribute £150m towards the buildings of the Isle of Dogs station. The station has a fixed budget of £500m, and CWG will take liability for any costs over the set budget.
CWG will be responsible for the design and construction of the station, work on which is due to commence in the first half of 2009. Planning approval has already been obtained for 9,300sq m of retail space and roof car parking over the station.
City of London Corporation
- The City of London Corporation has agreed to directly contribute £200m to the Crossrail scheme. The Corporation will also look to raise an additional £150m from businesses, and has provided a guarantee for the first £50m.
BAA
- BAA will be providing a £230m funding package towards the Crossrail project. The funding will be delivered in 2 segments. Crossrail will include high speed train links from Heathrow to central London and to Abbey Wood in east London.
Business Rate Supplements
- A Business Rate Supplements Bill has been published proposing supplemental charges which aim to contribute £3.5bn towards Crossrail. The bill provides “upper tier” councils with the ability to increase business rates of properties with a minimum rateable value of £50,000, by 2p in every pound. The supplements will be retained by the council and used for funding local economic development. The Bill could formally be laid before Parliament in October 2009.