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_______________________________________________________________

date 6 August 2015
source Office of Rail and Road
type Letter

Alan Price Director, Railway planning & performance
Telephone 020 7282 2073 alan.price@orr.gsi.gov.uk

Paul Plummer
Group Strategy Director
Network Rail Infrastructure Limited
1 Eversholt Street
London
NW1 2DN

6 August 2014

Dear Paul

Possible breach of condition 1 of Network Rail's network licence with
regard to its delivery of its enhancement programmes

I wrote to you on 31 March 2015 to advise Network Rail (NR) that the Office of Rail Regulation (ORR) was investigating the delivery of your enhancement programmes. We would like to take this opportunity to thank you for NR's cooperation and the information it has provided to ORR during the investigation.

The purpose of this letter is to summarise our preliminary findings following our investigation, and to give NR the opportunity to make any additional substantive representations. ORR's Board will decide if NR is in breach of its network licence.

The purpose of our investigation has been to establish whether NR did, or is doing, everything reasonably practicable to meet its licence obligations in relation to achieving its regulated outputs for CP5 in particular the planning, management and delivery of the enhancements projects in NR's Enhancements Delivery Plan.

lt is important to set out how this investigation fits in with other related reviews concerning NR, including the 'Hendy review' of the enhancements programme. While this investigation has been undertaken due to NR missing milestones in the current programme, the underlying weaknesses that we have focussed on relate to NR's management capability to develop and deliver projects. Addressing this is vital if NR is to deliver either the current programme or any proposals emerging after the review. Therefore, rather than carrying out a specific deliverability assessment of individual projects and programmes, we have examined what steps NR is taking across the business to tackle the identified weaknesses. We also expect these areas for improvement to be included as part of the wider capability assurance framework; on which Mark Carne and Richard Price exchanged letters in July.

Our investigation has focused on the late completion of NR's development and delivery milestones because these are regulated outputs. We have also considered if there is evidence of systemic weaknesses relating to the delivery of these regulated outputs ...

[[for continuation please see the full pdf version in related documents]]

Railhub Archive ::: 2015-08-06 ORR-001