By Richard Johnstone | 9 July 2014
Auditors have urged the Department for Transport to better coordinate procurement of trains and rail infrastructure upgrades after concluding that plans to electrify the Great Western mainline at the same time as buying new trains represented a risk to value for money.
Analysing the department’s contracts for two large procurements of rolling stock – for Intercity Express for regional main lines and Thameslink in London – the National Audit Office said the deals met the DfT’s broad objectives of reducing long-term costs and improving the reliability and availability of trains.
However, auditors said they would not be able to conclude on the value for money of either contract until the trains were in service. The deal for InterCity Express trains, which will run on the Great Western mainline between London and South Wales and the East Coast line from London to Edinburgh, will cost around £7.65bn over 27.5 years, while Thameslink payments will total £2.8bn over 20 years. This includes the cost of the trains themselves as well as the cost of maintenance and of depots.
The NAO concluded that the government’s decision to electrify the Great Western line in 2009 – just two years after the procurement of the InterCity Express trains began – meant the specification needed for the trains changed,
Better strategic planning of infrastructure and train needs could have prevented the significant changes that occurred, the Procuring new trains report concluded.
While the programme was designed to be flexible enough to accommodate the change, future major procurement decisions should be based on a detailed, integrated plan to bring together infrastructure, rolling stock and franchising strategy.
As a result of the switch, progress on the electrification of the line, being undertaken by Network Rail, is now ‘a particular risk’ to the project.
Auditor general Amyas Morse said that there was ‘a gap between the department's stated desire to play only a strategic role in the rail industry and how it is acting’ by undertaking train procurement itself.
‘It needs to ensure that the industry understands its policy on the procurement of trains and produce a detailed integrated plan bringing together infrastructure, rolling stock and franchising strategy,’ he added.
Responding to the report, rail minister Stephen Hammond said: ‘The InterCity Express and Thameslink deals represent great value for money for the taxpayer, delivering the services that passengers need and expect by providing more seats on faster more reliable, quieter and greener trains.
‘Both programmes are essential in providing a much-needed increase in capacity on these key routes, as well as supporting growth, employment and connectivity across the country.’
