A major jump in the cost of electrifying the Great Western Main Line has been described as "staggering and unacceptable" by Ministers.

In a new report, the Public Accounts Committee said the £1.2 billion increase in the cost of the programme has raised concerns over the ability of the Department for Transport and Network Rail to manage similar future schemes, such as the planned electrification of the Midland Main Line and TransPennine routes.

The Committee said an examination of Network Rail's 2015 investment programme to find the extent of failings on the project, which led to cost overruns and a three-year delays, "are now clearer".

However, doubts remain over whether the scheme can still be delivered on a £2.8 budget by December 2018.

Meg Hillier MP, Chair of the PAC, said: "Mismanagement of the Great Western programme has hit taxpayers hard and left many people angry and frustrated.

"This is a stark example of how not to run a major project, from flawed planning at the earliest stage to weak accountability and what remain serious questions about the reasons for embarking on the work in the first place.


"The sums of public money wasted are appalling—not least the £330 million additional costs the Department for Transport will have to pay to keep the trains running because of delays to electrification.

"The Department failed to adequately challenge Network Rail's plans to carry out the infrastructure work and, even now, casts doubt on whether electrification work on this and other lines is even necessary."

In its recommendations, the PAC said Network Rail must improve its ability to produce realistic cost estimates and make sure that robust and detailed plans are in place for infrastructure projects before starting construction.

In addition, the DfT must ensure suitable assurance is in place before taking decisions on infrastructure investment "and other major decisions which depend on infrastructure being available". The Department should also reassess the case for electrification section-by-section and fund schemes "only where worthwhile benefits for passengers could not be achieved otherwise at lower cost".

The two organisations must also plan developments to rail services in a way which brings together trains, infrastructure work and the operation of services, obtaining independent assurance on their plans.

Overall, both the Department and Network Rail accept that there were significant failings in the design, planning and cost-estimating of the programme.

Ms Hillier continued: "Government accepts it got this project badly wrong and must now demonstrate it has learned the lessons.

"Network Rail admits there are still very significant risks in the Great Western scheme and it is vital these are fully identified and carefully managed.

"It must work with the Department to ensure this information is properly factored into the whole rail modernisation programme.

"For its part, the Department should urgently review its plans for electrification—not just on the different sections of the Great Western route, but also on the Midland Main Line and TransPennine routes.

"Electrification was heralded with the promise of benefits to passengers but the Government has a duty to determine if, in fact, these benefits can be delivered in a more timely and cost-effective way."

(LM/MH)