Today, Jo Johnson revealed in an annual update on the Crossrail project that it has had to request for an extra £590 million in funding from Transport for London (TfL) and the Department for Transport (DfT) because of increasing “cost pressures.”
The overall budget of the said scheme has now increased to £15.4bn from the initial from the £14.8bn budget.
DfT will provide £290m of the extra funding in conjunction with Network Rail for the completion of works on the national rail network. While a further £300m will be provided by TfL and Dft equally.
The minister of state of the DfT reemphasised that despite the rise in funding, 60 percent of the project has still been funded by “Londoners and London businesses.”
In a statement that was attached to the report, Johnson stated: “As reported in the update to Parliament last year, cost pressures have increased across the project.”
He added: “Both the department and TfL remain committed to the successful delivery of this project and have agreed on an overall funding envelope for delivery of the project of £15.4bn.”
He continued: “As with all projects of this nature, there have been a number of engineering and technical challenges that have already been surmounted in order to build the first new railway for a generation, and there will continue to be challenges right up until the final completion of the project.”
In 2010, the total cost of the project was revised down to £14.8bn from an initial target of £15.9bn, because of the more than £1bn in savings that was confirmed by the Comprehensive Spending Review of the government.
A Crossrail spokesperson said that the cost increases were “disappointing,” however, he said that new funding is “critical” if the completion of the project is to continue.
A TfL spokesperson stated: “Building the railway has involved some of the most complex engineering ever undertaken in Europe. A number of factors have meant that additional investment has been needed. However, despite the additional investment, the final cost is still well within the budget originally envisaged.”