ORR publishes policy to encourage infrastructure investment
7 October 2005
ORR/41/05
The Office of Rail Regulation (ORR) has today published its policy framework to facilitate investment in the rail infrastructure. This framework, within which all parties to investments can work to deliver schemes efficiently, covers what Network Rail should do to facilitate and deliver investment, terms (including principles for risk allocation) for carrying out investments, and specific proposals in relation to investments sponsored by third parties (i.e. bodies other than Government and Network Rail, such as regional and local authorities, train operators and private developers).
To give effect to this investment policy, ORR will:
- work closely with Network Rail to establish a code of practice (enforceable by ORR) setting out the terms of its engagement with its customers and funders, including whom to contact, the timescales for responses to proposals, the steps in the process of delivering investments and the framework for contracting with Network Rail;
- streamline effectively other industry processes related to investment, in particular the reform of Part G (network change) of the Network Code;
- for third-party investments, ensure clarity of legal, economic, and financial obligations set out in templated contracts, including who bears what risks, the prices of provision of different services, and the remedies following any breach of contract; and
- monitor the framework and act as necessary to address any failings.
Chris Bolt, Chairman of ORR, said:
“The test of the new arrangements will be whether they result in more schemes being taken forward, and delivery of better value for money. The onus is now on Network Rail to make sure this is achieved.”
The range of infrastructure investments which will be covered by the framework on the railway network includes connections to private freight facilities, construction of new maintenance depots, small and large-scale station improvements (ranging from new facilities at minor stations to the proposed Kings Cross redevelopment), and infrastructure improvements and upgrades. The investment policy framework set out in this document follows a consultation earlier in the year, and extensive work with Network Rail, Department for Transport (DfT), train operators, and other industry stakeholders.
Notes for editors
- The policy framework for investments: conclusions is published today(Please see related links).
- Policy framework for investments: an initial consultation was published in February 2005 (please see related links).
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