HS2 says project remains on track

HS2 Ltd has responded to a report by the National Audit Office saying it remains confident that it will deliver the full scope of the project and on budget.

The report raised concerns about the HS2 project running to an “unrealistic timetable”, questioning the proposed 2026 opening. Increasing costs could also prevent the full range of benefits being implemented.

Amyas Morse, Head of the NAO, said: “HS2 is a large, complex and ambitious programme which is facing cost and time pressures.”

HS2 Ltd said it reflected other significant engineering projects and was on a “learning curve” as the method of construction and cost control evolve as the project design stage advances.

The Company said that this process instilled confidence that that it will be able to meet its ambitious strategic objectives and the budget for Phases One and Two.

Lessons had been learnt from value engineering and international best practice and innovation, meaning costs could be significantly reduced.

Such is HS2 Ltd’s confidence in the project, it has invited bids worth £11Bn on contracts for Phase One. The contracts include incentives for partners to work with HS2 to find further ways to reduce costs and increase efficiencies, without impacting on the strategic scope and objectives of the project.

The NAO recognised the progress made since the 2013 report including clarifying the strategic objectives; taking a more structured report to regeneration in comparison to HS1; and the progress made in building the internal capability to deliver the project.

Chief Executive of HS2, Simon Kirby, commented: “The role of the NAO is to challenge projects such as HS2 and through that challenge improve the way they deliver for the taxpayer. This report does this and we accept that challenge.

“It also, however, recognises the real progress we have made in taking the concept of HS2 and moving it nearer reality.

“As the report says, HS2 remains a highly ambitious project, but as it also demonstrates there are real and substantial grounds why the public, government and parliament should have increased confidence in our ability to deliver the project. Our job is to keep earning that confidence going forward.”

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