2013 Report details for project: Rail Refranchising Management Programme - Greater Anglia Short

Project name Rail Refranchising Management Programme - Greater Anglia Short - there is only one report for this project
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Organisation DFT (D9) - see all reports for this organisation
Report year 2013 (data is from September 2012)
Category Infrastructure - see all reports for this category
Description: The Secretary of State is required to designate certain services for the carriage of passengers as suitable for franchising under section 23 of the Railways Act 1993 (as amended). The Greater Anglia services have been so designated and a procurement competition therefore needs to be run to re-let the Greater Anglia Short term franchise. The aims are • to deliver the re-franchising of Greater Anglia services by February 2012, • to ensure that the new franchise is let on terms that meet the franchise objectives; and • to ensure that the new franchise meets the Department’s value for money and affordability requirements.
DCA (RAG) Green
DCA text: The franchise is live - February 2013.
Start date 2010-06-01
End date 2013-02-28
Schedule text Completed on schedule.
Baseline £-144.70m
Forecast £-154.90m
Variance 7.05%
Variance text: Subsequently, National Express was deprived of the franchise and it was competed being won by Abelio with a much higher premium than forecast in the Comprehensive Spending review (CSR) Budget. DfT takes revenue risk which means that DfT provides revenue support. Farebox revenues are over 3% lower than forecast in the CSR Budget which has lead to significant revenue support however the much higher premium bid by Abelio more than compensates for this so that overall at Q2 of 2012, the income from Greater Angila is better than budget. To summarise, the circumstances of the budget and forecast are completely different and the performance at Q2 reflects a better net premium achieved through re-franchising.
Whole Life Cost £-396.78m
WLCost text: The bases of the Budget and the Forecast are entirely different. The CSR Budget was based upon the expected franchise terms at that time with an expectation that National Express would continue with the franchise until its re-let in February 2012 with a premium that reflected the standard assumption on re-letting at that time of a Train Operating Company Margin of 7%.
Sourcefile DFT_2013.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.