High Speed 1 - a Public Private Partnership success?

Résumé du document

The Channel Tunnel Railway Link (CTRL), now called High Speed 1, is the first high-speed railway constructed in the UK, significantly reducing the journey time from 3h to 2h15 for London-Paris Eurostar passengers and offering a potential for freight use. HS1 Ltd is the organization that owns the assets of the CTRL, such as the stations along the route. Apart from providing faster links between Great Britain and continental Europe, the project diverts Eurostar traffic away from the conventional rail network. The new line caters for Eurostar traffic, a new high-speed service between London and Kent along with freight trains. The new line crosses the Thames and the east of London via a tunnel.

Extraits

[...] In this discussion note, I will explain why the Public Private Partnership legal form was chosen and how the tender took place. I will then conclude on the success or not of the CTRL PPP How did the UK Government choose to finance the CTRL through a PPP? A. Why not entirely private or public financing? The construction cost being higher than service revenues and land re- developments, an entirely private financing would not have been viable. Furthermore, the regeneration in east London and the Thames Gateway being of general interest for the UK, public investment had to be directed into the project. [...]

[...] The resulting CTRL Act defined work boundary and established the powers to acquire the necessary land. Also, formal steps were taken to secure cooperation from the private sector How did the competition for tender take place? A. Criteria to select the right promoter In February 1994, a notice in the Official Journal of the European Community announced the launch of the competition for tender. Organisations were assessed on their ability to deliver the project in line with performance targets set by the Department of Transport. [...]

[...] LCR has consolidated the two sections of the railway into one company, HS1 Ltd, in preparation for sale. From a management and operational point of view the whole railway is treated as one entity, High Speed One has a very evolving structure: it has changed many times since the initiation of the project. This reflects the flexible and virtual nature of the Special Purpose Vehicle. This PPP is recognised as very successful as both delay and budget limits were respected. This is only the beginning of a long railway development. [...]

[...] By the end of 1993, the team had reviewed the key features of other private finance projects and had identified the key success factors. Studies were also undertaken in order to coach the selected promoter to deliver the results that the Government wanted. Prior to the selection of the successful bidder, Union Railways Limited which was funded by the European Commission under the Trans-European Networks (TENs) programme, reviewed the route that had been announced by the Secretary of State in October 1991. [...]

[...] CTRL's aim 2 B. Project's steps How did the UK Government choose to finance the CTRL through a PPP? 3 A. Why not entirely private or public financing? 3 B. Studies realised to optimize the project How did the competition for tender take place? 4 A. Criteria to select the right promoter 4 B. Montage Recovery plans and project outcome 5 A rescue plan 5 B rescue plan 6 Conclusion 7 Appendix 9 Channel Tunnel Railway Link project presentation A. [...]