Weekly round-up 28 May 2014

Kirby hires Crawford for HS2, engineer on the first plastic bank note and Russia and China get closer - your weekly news review.

Jackie Whitelaw
28 May 2014

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1. Jut a couple of days into his new career at HS2 as construction chief executive, ex-Network Rail infrastructure projects boss Simon Kirby has announced the appointment of Network Rail’s Thameslink director Jim Crawford as HS2’s programme director for phase one. Kirby and his chairman, former Network Rail chief executive David Higgins are two of five recipients of Network Rail year end bonuses of 12.5% of salary (around £50,000). Awards have been cut because of mixed results during the year – maximum possible was 60% of salary. Group finance director Patrick Butcher, managing director network operations Robin Gisby and group strategy director Paul Plummer also received the bonus awards.

2. The first plastic banknotes in Britain will be introduced in Scotland next year and celebrate Forth Bridge builder Sir William Arrol. The £5 notes will be issued in March 2015 to coincide with the 125th anniversary of the rail bridge.

3. There are between 2.2bn and 8.6bn barrels of shale oil in the Weald Basin of Sussex, Hampshire, Surrey and Kent according to a new report by the British Geological Survey. But BGS says there is no significant gas resource to frack. Also last week Government proposed that shale oil and gas companies are granted access to land below 300m from the surface. The companies would pay £20,000 to those living above the land, it suggested.

4. Government has published the Major Projects Authority’s second annual report into the performance of 199 major projects with a forecast lifetime cost of £488bn. The report notes that 47 new projects have entered the MPA portfolio. It also says that half of the civil service project leaders have attended the Government’s new Major Project’s Leadership Academy. The result is that while in the past more than half of project reviewers were consultants, last year that figure fell to 13% through developing in house skills. 

5. Russia has signed a $400bn deal to supply gas to China for 30 years. Chairman of Russian state giant Gazprom Alexey Miller was reported as saying the deal was a black moment for Europe. He told the St Petersburg Economic Forum: “The global competition for Russian gas resources has started. We have untapped the Asian market and this is going to have an impact on European gas prices.”

6. Meanwhile the construction of a new railway bridge between Russia and China will begin in the next few months with completion targeted for 2016. The bridge will cross the Amur River and will shorten the journey between the two countries by 700km. It will also facilitate a new export corridor for gas and oil fields being developed in Siberia. 

7. Also this week Russia has engaged two Chinese firms to expand Moscow’s subway. Developer Mosinzhproekt signed a deal in Beijing with China Railway Construction Corporation and China International Fund to build a 15km south western metro line.

8. First two gas fired power station projects in a portfolio of energy developments from Watt Power have been accepted for examination by the Planning Inspectorate. One at Hirwaun near Aberdare in South Wales will generate up to 299MW and the other of the same capacity is at Eye in Suffolk will require a Development Consent Order from the Secretary of State for Energy and Climate Change. Target date for operation of the £200M projects is 2018/19. Peter Brett Associates submitted the applications.

9. Nearly seven out of 10 construction firms in Scotland are planning to take on apprentices as industry confidence continues to rise, a survey has found. The latest Scottish Construction Monitor found 69% of firms surveyed expected to recruit apprentices in the next 12 months. This compared with 60% over the past year.

10. Department for Transport has announced its intention to award the new Thameslink, Southern and Great Northern rail franchise to Govia Thameslink Railway Ltd. The seven year franchise – the largest ever let in terms of passenger numbers – will open up new routes across London and improve services to many destinations.