Network Rail opens infra projects to outside firms

Network Rail is reforming the way it procures projects to allow more companies to build and invest in its infrastructure.

Network Rail will publish a pipeline of opportunities by the end of this year for firms to bid for.

Schemes will initially be smaller scale like new stations, depots, car parks and new local lines.

Winning bidders who save Network Rail money through innovation will also share in the proceeds.

The reforms have been welcomed by infrastructure giants Balfour Beatty and Costain.

Leo Quinn, Balfour Beatty group chief executive, said: “The changes set out are designed to unlock exciting opportunities to invest and improve the UK’s rail network.

“At the same time this should provide a steadier flow of investment, moving away from the stop-go nature of a regulatory cycle, and helping the rail supply chain to invest in the skilled workforce necessary to build  world-class railways.”

Andrew Wyllie, chief executive, Costain added: “As a major engineering solutions provider to Network Rail, I welcome the proposals which represent innovative thinking in the way critical rail infrastructure is delivered in the UK.”

Some of the reforms announced by Network Rail include:

• Publishing a regular pipeline of third party project opportunities
• Creating a swathe of third party project champions across the country who will work side-by-side with delivery bodies, investors and funders to ensure their projects are successful
• Creating a clear service level agreement for third parties so they have clarity and reassurance regarding Network Rail’s legal obligations
• Introducing flexibility to railway standards without compromising safety record
• Launching a  rewards scheme where money saved from introducing a new idea or innovation is shared between Network Rail and the company or individual

Mark Carne, chief executive, Network Rail, said: “I am determined to create an environment where innovative third party companies can compete for and directly deliver railway projects.

“These reforms mark the next stage of Network Rail’s transformation having already decentralised into nine devolved individual businesses.”

The reforms will also unlock new sources of funding because potential investors will have choices over who delivers projects for them.

Carne added: “I am also determined to find ways for the private sector to directly invest in railway projects.

“As a government owned business, this has some challenges, but by unlocking private finance we can potentially deliver railway improvements that would otherwise not be possible.”

One of the first examples of a privately financed project is a two-year deal with signalling specialist Resonate.

Resonate is introducing its new, digital traffic management system into the signalling and control systems for the main lines out of London Paddington that could reduce delays by up to 15%.

The deal sees the supplier financing and bearing the risk of introducing the new technology but it will reap rewards from the savings made in reducing delays.

from Construction Enquirer http://www.constructionenquirer.com/2017/07/31/network-rail-opens-infrastructure-projects-to-outside-firms/

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