FINANCE, RISK, PROCUREMENT | INSIGHT


Portal extension structures on Chiltern Tunnel, HS2.


in London, for those were delayed, by government - well, a few governments ago which would suggest a long time but is not so in real years. As such, the plan as it now stands is for partial opening


of the Phase 1 route from Birmingham to London Euston. First, trains will only run as far as the edge of London, to the Old Oak Common hub, and are expected to do so around 2036-39; again, a range. So, closer to 2040. And, as another part of the reset, the top speed that was


planned is no longer so. The service will be slower than advocated for, initially, although still fast. Full completion of the route - taking trains all the way into central London, and consequently travelling slower still - is expected around 2024-43; another range. So, perhaps nudging towards 2045. That outcome is the available achievement even


after lopping off Phase 2 of the scheme, at the behest of government. The scope of the HS2 rail scheme was ambitious and immense. Phase 2 was being planned for, then, albeit in only early thinking. But when the delays and cost overruns in mainly Phase 1 were becoming obvious, Phase 2 was cut, in 2023. Action was taken by government, especially one looking to cut costs after the outlays in general during covid pandemic and those ensuing economic and financial problems for the UK. The high-speed strategic link for the nation was


trimmed at both ends: gone was Phase 2, north of Birmingham; gone, too, was the line into central London by tunnel to reach the planned grand terminus at Euston. For the latter the door was left open for the involvement with the property sector to inject funding at Euston, and then there were other initiatives and plans, which saw London link come back into the picture. It couldn’t not be so, ultimately, for a high-speed line unable to get into a world capital would not bring bragging rights upon the world stage, in any arena - political, financial, infrastructure. Quite the opposite. Construction of HS2 continues and it still has a long


way to go, although less so for the civils works and tunnelling, overall - and which, again, have performed


technically well. Much that is left is for non-civils works and equipment and fit-out, and rolling stock. So what have been the problems getting this far? Mostly


the those mentioned by DfT and, as noted by NAO: scope change; inefficient delivery; and, underestimating how long building such a big project would take to complete. Until March this year the DfT and HS2 Ltd have


spent £46.8 billion - or about half the latest estimated approximate final cost - on the high-speed project, including efforts for Phase 2.


RESETTING HS2 WAS THE ONLY WAY


TO REGAIN CONTROL OF THE PROJECT. - CEO, HS2 LTD.


NAO observes that HS2 Ltd expects the 2025-27 reset


work to cost around £153 million. In May, DfT said the reset is fully funded within its current Spending review settlement, with no additional borrowing. It added that funding beyond 2029-30 will be set at future Spending Reviews. Why has it been taking so long to reset and is costing so much? Getting sufficient and accurate information and data to know what has gone on, and how and why, and to ensure certainty around the numbers for such provides the foundation for the reset analysis; then, re-planning and re-arranging so much. Mark Wild, Chief Executive of HS2 Ltd, and


previously appointed to sort the project, said in a statement, in May, “Resetting HS2 was the only way to regain control of the project.” While it views the government and HS2 Ltd to be


“taking a considered approach,” the NAO cautions that “significant work” still needs to be done before the reset is completed in 2027, and so warns the promoters against “putting their revised plans into action until they are confident everything is in place to deliver against them.” NAO notes that reset works remaining includes:


finalising the cost and schedule; completing commercial renegotiations; developing plans at Euston;


July 2026 | 31


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45