MD2015 Growing Places Fund – West Anglia route improvements

Type of decision: 
Mayoral decision
Code: 
MD2015
Date signed: 
19 August 2016
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

This paper seeks Mayoral approval for the GLA to receive £250,000 grant funding contribution from the LB Enfield and £250,000 grant funding contribution from the LB Haringey, specifically intended for the STAR project. This funding will be transferred to the GLA under Section 31 of the Local Government Act 2003. Following receipt of this funding, this MD seeks approval for the GLA to transfer the combined boroughs funding of £500,000 to TfL via Section 120 of the Greater London Authority Act 1999.  
The West Anglia route improvements, Stratford to Angel Road (STAR) project will benefit parts of the Upper Lee Valley which comprises some of the most deprived neighbourhoods in London. The Growing Places Fund investment of up to £30.7million was approved by MD1496.  

This investment, which is part of a total £52.4 million funding package, is required for the extension of the Network Rail funded project to deliver a third rail line from Lea Bridge to Tottenham Hale. This funding package will enable the extension of the third rail line to cover the rail section between Tottenham Hale and Angel Road; the complete improvement works will contribute to the unlocking of major developments at Meridian Water and Northumberland Park by delivering the provision of better connectivity between Stratford and Angel Road on the West Anglia Route. 
 

Decision

That the Mayor approves:    

1)    receipt of a £250,000 funding contribution from the London Borough of Enfield for the STAR scheme and its subsequent transfer to TfL, who are taking on the sponsor and administration role of the Stratford to Angel Road route improvement project; and 

2)    receipt of a £250,000 funding contribution from the London Borough of Haringey for the STAR scheme and its subsequent transfer to TfL.
 

Part 1: Non-confidential facts and advice

Introduction and background

1.1.    The Upper Lee Valley comprises some of the most deprived neighbourhoods in London, with high deprivation, low skills and associated high levels of worklessness and low life expectancy.  Despite being an area of significant development potential, growth and private sector investment, the Upper Lee Valley has been constrained, in part due to the low frequency of trains at key stations along the West Anglia route.  The Stratford to Angel Road (STAR) project seeks to address this barrier to growth.

1.2.    The Growing Places Fund investment of up to £30.7million was approved under cover of MD1496.  This investment, which is part of the projects £52.4 million funding package, is required for the extension of a Network Rail funded project  to deliver a third rail line from Stratford to Tottenham Hale; with this funding package enabling the extension of the third rail line to cover the rail section between Tottenham Hale (via Northumberland Park) and Angel Road . The complete improvement works will allow for the running of an additional 2 trains per hour from Stratford to Angel Road on the West Anglia Route. 

1.3.    The Upper Lee Valley benefits from a range of development sites, including Meridian Water and Northumberland Park. The complete improvement works of the STAR project (to deliver the provision of better connectivity between Stratford and Angel Road on the West Anglia Route) will contribute to the unlocking of these key development opportunities and facilitate the delivery of jobs and homes at a scale which maximises the areas potential (Meridian Water (5,000 homes and 3,000 jobs) and Northumberland Park (3,500 homes and 500 jobs)).  

1.4.    The full funding package (as set out in MD1560) of £52.4m has been confirmed from the following sources: 
 

Source

Finance

 

Growing Places Fund

£30,700,000

 

Network Rail

£5,200,000

 

London Borough of Enfield

£250,000

 

London Borough of Haringey

£250,000

 

Transport for London (TfL)

£10,000,000*

 

Department for Transport (DfT)

£6,000,000

 

Total

£52,400,000.00

 

 

* This is in addition to funds allocated by TfL for the station works at Tottenham Hale (access for all bridge & the Hale Village link bridge), which is being delivered as a separate component.  

1.5.    Previous approvals for the STAR project are in place under the covers of MD1383 (18 July 2014),  MD1496 (19 May 2015) and MD1560 (9 October 2015). Since the last approval, the STAR project has made good progress against the planned programme, in particular:
•    The Hendy Review Report was concluded and published in November 2015, the review focused on the re-planning of Network Rail's Investment Programme. The STAR project was approved to be delivered in the current control period (CP5) by the Hendy Review; the programme for STAR was then set out in the Network Rail Enhancement Delivery Plan which revised the indicative date for Infrastructure Entry into Service from March 2018 to December 2018.
•    The GLA extended their Development Services Agreement (DSA) contract with Network Rail in October 2016 to cover the delivery of GRIP  Stage 3 and GRIP Stage 4 in full; these works were completed by Network Rail in December 2015 and May 2016 respectively. The GRIP Stage 3 works covered designs for track, signalling structures, overhead line equipment, and telecoms.
•    A proposal for progressing a package of early enabling works was authorised at a Network Rail Investment Panel on 18th December 2015. A funding agreement was signed with the GLA in December 2015; and the early enabling works (which helped to de-risk the overall STAR programme ahead of the construction phase commencing) started on 4 January 2016 and were completed on 31 May 2016 as programmed. The works included the purchase of long lead materials (HVI track circuits - a type of signalling equipment) and commencement of early physical enabling works to move signalling equipment that was located on the eastern side of the existing railway tracks which needed to be moved as that is where the new third track will be positioned.
•    The development of a communication strategy, which is being led by Network Rail and VolkerFitzpatrick, began in May 2016. The strategy is expected to be completed in August 2016, with implementation beginning in September 2016. 
•    The Network Rail investment paper for GRIP Stages 5 - 8 (detailed design & construction) was submitted for authority in May 2016; investment authority was granted by Network Rail for GRIP Stages 5-8 on 10 June 2016. At this point, Network Rail is working with TfL (who are taking on the sponsor and administration role from the GLA from GRIP Stage 5 onward) to finalise and sign their Agreement for the STAR project.

1.6.    Network Rail is on programme to enter into a contract with VolkerFitzpatrick at the start of August 2016 (in time to start on site for early construction works on 24 September 2016). The original plan was for TfL to go into funding agreement directly with the two boroughs for their funding contributions of £250,000 each for STAR. However, due to time pressure and in order for the project not to lose momentum, the STAR/Meridian Water Station Steering Group  agreed on 26 May 2016 that it would be a faster process and more time efficient for the boroughs to channel their funding via the GLA to TfL; this is because (i) letters are already in place between the GLA and boroughs which confirms this funding and (ii) the GLA are at advanced stages of their agreement with TfL to transfer over STAR sponsorship, administration and funding into which the GLA can easily integrate the borough funding.
 

Objectives and expected outcomes

The aim, objectives and outputs are unchanged from MD1560. 

 

Equality comments

The equality comments are unchanged from MD1560. 

 

Other considerations

4.1.    Accept for the following item, the other considerations are unchanged from MD1560: 

Links to mayoral strategies

4.2.    This STAR project investment links to Mayoral manifesto pledges as follows:
•    A “Modern and Affordable Transport Network” – the STAR project supports the Mayor’s manifesto pledge by improving the West Anglia service from Stratford to Angel Road through direct investment and through planning for London’s future transport needs as the population of the Capital continues to grow.
•    “Homes for Londoners” – by supporting the unlocking of two key development sites in the Upper Lea Valley (Meridian Water (5,000 homes) and Northumberland Park (3,500 homes)) the STAR project is supporting the delivery of the Mayor’s manifesto pledge by helping build thousands more homes in London. 
•    “Business, Prosperity and Opportunity” – by helping create the modern transport infrastructure the Upper Lea Valley needs to grow and expand, the STAR project is supporting the Mayor’s manifesto pledge around business growth in London (with the Meridian Water development forecast to unlock 3,000 jobs and Northumberland Park development 500 jobs).

 

Financial comments

5.1    MD1560 set out the full funding package of £52.4m for this project, which originally included the proposal for TfL to enter into funding agreements with both the London Borough of Enfield and Haringey for their receipt of funding (£250,000 each). Due to reasons noted within paragraph 1.6 of this report, it was determined that it would be more efficient to transfer the funding to the GLA.

5.2    Consequently, the funding from both London boroughs will be transferred under Section 31 of the Local Government Act 2003. Following the GLA’s receipt of this funding, the GLA will transfer the combined boroughs funding of £500,000 to TfL via Section 120 of the GLA act (for which this report is also seeking approval). All appropriate budget adjustments will be made. 

5.3    There are no further changes to this project from that originally approved by MD1560. 
 

Investment and Performance Board

7.1.    This decision was not considered at the Investment Performance Board (IPB) however:

•    The full £52.4 million STAR funding package (including the contributions from the boroughs of Enfield and Haringey) was set out under the cover of MD1560 in October 2015, and this funding package remains unchanged;
•    Approval for TfL to take on sponsorship and administration of the STAR project from GRIP Stage 5 was approved by MD1560 in October 2015, this governance structure remains unchanged; and
•    Letters confirming funding contributions (including Cabinet approval) from LB Enfield and LB Haringey are already in place as they were received by the GLA in March 2015.
 

Planned delivery approach and next steps

8.1.    Accept for the following two items, the planned delivery approach and next steps are unchanged from MD1560: 

8.2.    To date, project reporting has been to the STAR/Meridian Water Station Steering Group, which is facilitated by the GLA and includes representatives from Network Rail, Transport for London, Department for Transport, the train operating company, the London-Stansted-Cambridge Consortium, LB Enfield and LB Haringey.  It is proposed that this Steering Group will continue, and progress will be reported to the representatives of the Group on a regular basis (quarterly).  

8.3.    The £250,000 grant funding contribution from the LB Enfield and £250,000 grant funding contribution from the LB Haringey, specifically intended for the STAR scheme, will be transferred to the GLA under Section 31 of the Local Government Act 2003.    Following receipt of this funding, this MD seeks approval for the GLA to transfer the combined borough funding of £500,000 funding to TfL via Section 120 of the GLA act.  The timing and terms of the transfer are to be agreed however the transfer  can take place once TfL approvals to spend STAR funding (including approved contributions from TfL / GPF / London Boroughs / DfT) is in place (estimated July 2016).  
 

Planned activity

Indicative timeline

Project sponsorship and administration transferred over from GLA to TfL

Late July 2016

TfL and Network Rail enter into Agreement for the STAR project

Late July 2016

Network Rail enter into contract with VolkerFitzpatrick

August 2016

GRIP Stage 6 commences (start on site for early construction works)

24 September 2016

GRIP Stage 5 completion (detailed design)

July 2017

Timetable change scheduled to take place

December 2018

GRIP Stage 6 completion (infrastructure ready for use)

15 October 2018

Infrastructure entry into service

11 December 2018

Project completion

March 2019

Evaluation

June 2019