Northern Line Extension (1)

Meeting: 
MQT on 2019-06-20
Session date: 
June 20, 2019
Reference: 
2019/12202
Question By: 
Florence Eshalomi
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

In May 2018, responding to my question about a £240 million rise in the cost of the project, you said “This is a commercially sensitive matter so it is not appropriate for me to discuss details, but the point is that the additional work that we have had to do has been undertaken because of the changes made by the developer, so we expect them to pay for those changes.  The conversations/discussions are ongoing, so we will just wait and see what happens.” 12 months on, are you able to update me on the result of those discussions and what increased cost, if any, will fall on TfL?

Answers

Answer for Northern Line Extension (1)
Northern Line Extension (1)

Northern Line Extension (1)

Answered By: 
The Mayor

The original funding for the project was £1.044bn.  The first £1bn was paid up-front by the GLA to be repaid from:

  • Vauxhall Nine Elms Battersea Opportunity Area developer contributions – i.e. section 106 and Community Infrastructure Levy payments 
  • Incremental business rates from new commercial developments within the Nine Elms area the new Enterprise Zone (these commenced in April 2016, for an assumed period of 25 years).

TfL now expects the final cost of the project to be within approximately 10 per cent of the original funding. Any costs in excess of £1bn will be covered by Transport for London (TfL), which has reached an agreement with the developer to address the additional time and costs arising from the changes made at Battersea. This agreement is commercially sensitive while the programme is in delivery so TfL cannot disclose details at this time.