Agreement with Network Rail and telecoms firms signals move towards public private funding models for infrastructure upgrades
The Department for Transport has signed a public-private partnership with Network Rail and telecoms firms to remove mobile blackspots on busy rail routes.
Signed today, the deal will see telecoms company Neos Networks install 1,000km of ultra-fast fibre optic cable along the East Coast Main Line, parts of the West Coast Main Line and the Great Western Main Line.
The department said it wants to expand the scheme, named Project Reach, beyond 5,000 kilometres in the 鈥渘ear future鈥�.
Another telecoms firm, Freshwave, will also tackle signal blackspots in 57 tunnels, covering almost 50 kilometres, including the 4-kilometre-long Chipping Sodbury tunnel near Bristol.
>> See also: The infrastructure strategy opens the door to private finance
Meanwhile, mobile network operators will invest in new 4G and 5G infrastructure at 12 major Network Rail stations including Birmingham New Street, Bristol Temple Meads, Edinburgh Waverley, Euston, Glasgow Central, King鈥檚 Cross, Leeds, Liverpool Lime Street, Liverpool Street, Manchester Piccadilly, Paddington and Waterloo.
The government鈥檚 use of a public private partnership (PPP) follows last week鈥檚 publication of its 10-year infrastructure strategy, which opened the door to the funding approach where 鈥渁ppropriate risk-transfer can be achieved, and value for money for taxpayers can be secured鈥�.
Other uses of PPPs confirmed by the government include private financing for Euston鈥檚 HS2 station
However, the government also said it would only pursue PPPS 鈥渨here there is a revenue stream鈥�, appearing to rule out projects where the income to pay back any private finance comes from the taxpayer, such as PFI-style structures.
The government said the Project Reach scheme will save the taxpayer 拢300m. It is set to start its first installations next year and will be fully rolled out by 2028.
Network Rail chief financial officer Jeremy Westlake said the project鈥檚 investment model will 鈥渄eliver the necessary upgrades to our telecoms infrastructure faster whilst offering significant value-for-money for the taxpayer and stimulating wider economic benefits across the country鈥�.
Transport secretary Heidi Alexander added: 鈥淭his is a game changer for passengers up and down the country and will revolutionise journeys from Paddington to Penzance and Edinburgh to Euston.
鈥淏y boosting connectivity and tackling signal blackspots, we are also ensuring a more reliable and efficient service.鈥�
No comments yet