Recommendation 9

The construction of the main civil engineering components of the programme (such as tunnels and viaducts) is a major undertaking and was a major cause of delays and cost increases at the time of our last report.16 In a letter following our evidence session, HS2 Ltd informed us that it had now contracted all the civil construction work, worth £15.5 billion, of which it had paid approximately £2.5 billion. It told us that the estimated total cost of all four stations for Phase One would be just over £5 billion, and that it had agreed contracts for three of the four stations. As a result, it expected that the construction for Old Oak Common would be £1.67 billion, Birmingham Curzon Street would be £460 million and Euston would be £2.6 billion. It explained that it had not yet agreed a contract for construction at Birmingham Interchange but expected this to cost in total between £350 million and £500 million. HS2 Ltd told us that it estimated that railway systems will cost a total of £3.6 billion. Although some of the smaller systems contracts, such as the tunnel safety doors, had already been procured, HS2 Ltd told us that railway systems was the part of the programme where most procurement was outstanding. HS2 Ltd told us it planned to procure the larger systems contracts, such as track, electrification, signalling and controls, in the next two years. HS2 Ltd estimated the cost to purchase the trains (rolling stock) would be around £1.6 billion. The Department and HS2 Ltd told us that they hoped to award the contract to design and build the trains later in 2020.17