Croxley Rail Link - Funding

Funding

In 2005 Transport for London (TfL) tentatively committed to providing up to £18m of the total estimated costs of £65m for the project, predicting that the link would be operational by 2010. However, difficulties subsequently arose in securing the remaining funding from the Department for Transport and a revised project submission, under new guidelines, was prepared, with a view to obtaining Programme Entry status. A business case was submitted to the DfT in February 2008, citing revised costs of £95m. This was rejected in March on the basis that no guarantee of financial backing had been received from TfL.

The scheme took a major step forward in July 2008 when the East of England Regional Assembly declared it a "priority" among transport policies in the region and agreed to contribute £119.5m towards the estimated costs which were said to have risen to £150m. Hertfordshire County Council also agreed to allocate £25.8m which it hoped to recover through ticket sales and other London Underground revenue. It was predicted that the link could be operational within seven years.

It was hoped that these plans - the £162 million Croxley Rail Link and the £38 million Watford Junction Interchange - would reduce congestion and boost Watford's economy.

Stuart Pile, executive member for highways, transport and rural affairs, said:

“I’m delighted that the regional assembly will be pushing the Government to fund these schemes. We need to invest in our transport infrastructure if we’re going to support our economy and reduce congestion. The Department for Transport bases its funding decisions on the regional advice, so we’re optimistic that we’ll get the go-ahead and that the line can open in 2017.”

A revised business case was produced in autumn 2009 and the overall costs and scope reviewed. Following the coalition's Comprehensive Spending Review the Croxley Rail Link was placed in the pre-qualification pool and a further submission made to the Department for Transport in January 2011. In February 2011 the Department for Transport placed the project into a qualification pool of works that would be subjected to further assessments in order to bid for funding. A Best and Final Funding Bid was submitted to the Department in September 2011. On 14 December 2011, the Department for Transport agreed to fund £76.2m of the £115.9m project, with the remainder of the funding coming from the local authorities with a contribution of £33.7m and contributions from third parties of £6.86m.