Study of HS1 Escrow Arrangements

This is a contract result notice, not an open opportunity. Details from the official award data.

ORR is currently undertaking a periodic review of HS1 Ltd (PR19), which determines the level of charges that the company can levy for operations, maintenance and renewals.

A key component of our determination requires us to set the quantum of funding required for future renewals expenditure (that is, how much should be deposited in the Escrow account).

This requires us to take into account assumptions on many factors, including interest rates and the profile of the required renewal spend over the life of the concession.

While the mechanism for the funding of renewals is constrained by the contractual arrangements set out in the HS1 Concession Agreement, it is important to us that the process is as transparent as possible.

The Requirement: We require a study to independently analyse the current arrangements around the Escrow account to: - identify issues and possible improvements to the allocation of risk between those involved (including train operators, HS1 Ltd, NR(HS) (as current principal contractor) and DfT), including an assessment of whether the current arrangements reflect best practice; - assess whether the governance of these arrangements is best practice; and - analyse the transparency and clarity of these arrangements.

A Final Report is to be delivered to ORR by 19 July 2018.

Project Objectives & Scope: Purpose: The project is intended to deliver an independent analysis of the arrangements set out by the Concession Agreement between HS1 Ltd and Government for funding of renewals on the high speed network.

It should also assess how these arrangements are working in practice.

Scope: The recommended proposals should align to the terms of the Concession Agreement.

The project should seek comparators in rail and other industries, UK and globally, with a view to examining good practice that would work well for Government, Infrastructure Manager, and Train Operators.