Corporate Plan

Transcription

1 Corporate Plan

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3 HS2 Corporate Plan

4 High Speed Two (HS2) Limited has been tasked by the Department for Transport (DfT) with managing the delivery of a new national high speed rail network. It is a non-departmental public body wholly owned by the DfT. High Speed Two (HS2) Limited, Two Snowhill Snow Hill Queensway Birmingham B4 6GA Telephone: General enquiries: HS2enquiries@hs2.org.uk Website: High Speed Two (HS2) Limited has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the HS2 website. The text may be freely downloaded and translated by individuals or organisations for conversion into other accessible formats. If you have other needs in this regard please contact High Speed Two (HS2) Limited. High Speed Two (HS2) Limited, 2018, except where otherwise stated. Copyright in the typographical arrangement rests with High Speed Two (HS2) Limited. This information is licensed under the Open Government Licence v2.0. To view this licence, visit open-government-licence/ version/2 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or psi@nationalarchives.gsi.gov.uk. Where we have identified any thirdparty copyright information you will need to obtain permission from the copyright holders concerned. Printed in Great Britain on paper containing at least 75% recycled fibre.

5 Contents HS2 Corporate Plan About HS2 Ltd 4 Chair s foreword 6 The benefits HS2 Ltd will deliver 9 The wider benefits of HS2 12 CEO s introduction 14 What we have done in 2017/18 16 Case study: Preparing the ground 18 Case study: Innovation in Health and Safety 20 Measuring our performance in 2017/18 24 What we have learned in 2017/18 26 What we are doing in 2018/19 28 Case study: A positive legacy for communities 30 Case study: Protecting the countryside 32 Case study: Creating a diverse and highly 34 skilled workforce Measuring our performance in 2018/19 36 Case study: New skills for the HS2 generation 38 Managing uncertainty 39 What we will do in 2019/20 40 What we will do in 2020/21 44 Project snapshot 46 3

6 About HS2 Ltd Our vision is to be a catalyst for growth across Britain. Our mission is to build a new high speed railway to better connect people across Britain. As a high performing, innovative organisation, we will deliver value for money by applying the best in worldwide design and construction techniques. We will achieve new standards in infrastructure delivery, resilient operations and passenger experience. Our values Our four core values shape our behaviours in everything that we do at HS2 Ltd. They form the basis of our relationships with all our stakeholders. Our reputation stems from our four core values, which express what we all need to live up to, as individuals and as an organisation, and what is important in the way we deliver our vision and mission. Safety Integrity Leadership Respect Our guiding principles Our four guiding principles help us to translate our core values into day-to-day practice. They help us to make decisions and steer the way we work with others to shape and deliver the programme, and help us to set the priorities for how the Company operates. Ensure value for money We and our supply chain must be disciplined and focused in pursuing value for money for taxpayers. We will manage our costs efficiently, while protecting our strategic goals and benefits. Respect communities We will be good neighbours and respect the communities we impact. Our Community Engagement Strategy demonstrates our consideration for those affected along the route and drives our and our suppliers thinking, actions and decision making. Champion teamwork and collaboration We will be a responsible client for the HS2 programme. Through a truly collaborative approach we will grow positive, constructive relationships between ourselves and our suppliers, and between ourselves and Government, working as one team. Create a positive legacy for Britain HS2 will create a lasting legacy for the country, both by realising its full potential to transform connectivity, and therefore productivity, in the Midlands and the North, as well as to and from London and by creating a green corridor for the nation that links our natural habitats and local amenities. 4

7 Computer generated image of potential Curzon Street Station design 5

8 Chair s foreword HS2 is much more than a new railway. HS2 is the key to unlocking Britain s full potential. It s a bold statement and HS2 is a bold investment in people, communities and businesses the length and breadth of this country. 6

9 2017 was a defining year for HS2, the year we received Royal Assent for Phase One of this enormous project: permission to build a new high speed line from Birmingham to London. We have made significant progress since then. The essential groundwork has begun, both in reshaping our company for the task ahead and in the early works we physically need to complete before construction can begin. Our second hybrid Bill, seeking permission to extend the line from Birmingham to Crewe, has now been laid before Parliament and received overwhelming support at Second Reading. We have also moved a significant step closer to finalising the route for Phase 2b the section from Birmingham to Leeds, and Crewe to Manchester the detail of which will be set out in our third hybrid Bill. This past year has underlined the transformative role HS2 will play, not only in rebalancing our economy, but also improving productivity across the Midlands and the North. In December we published HS2: Getting the Best out of Britain. The report highlighted how businesses in those regions have historically been held back by poor connectivity, which has restricted access to talent, markets, professional services, finance and the supply chain that they need to thrive, despite their high skill levels and the presence of excellent universities and research facilities. A number of other defining characteristics have been shaped during the period covered by this plan. One of these is our approach to the environment. We know that building HS2 will affect the lives of thousands of people along the line of route and we have promised to mitigate that impact as much as possible. What has become clear, however, is that as we construct HS2 down the centre of the country we have the opportunity to create a green corridor. More than seven million trees and shrubs are being planted for Phase One alone. Working with the supply chain, and with the help of our independent Design Panel, we are building animal-friendly bridges, tunnels and new wildlife habitats that will help our new railway to blend into the surrounding environment and ensure HS2 leaves a positive environmental legacy. HS2 remains a huge task: multi-dimensional in scope, geography and duration, and working on it is an enormous privilege. This plan sets out how we are working to earn our right to exercise that privilege both during this past year and in the years ahead. Sir David Higgins Chair HS2 will help transform that picture by working with central and local Government, key stakeholders, and the supply chain to integrate with existing transport networks and align with each region s distinct growth strategy for the future. 7

10 National College for High Speed Rail, Doncaster 8

11 The benefits HS2 Ltd will deliver HS2 Corporate Plan HS2 represents a significant investment by the UK taxpayer, that s why the HS2 Programme has always been about building more than just a railway. Our seven strategic goals are about the benefits HS2 will bring to the country in the long term: We will be a catalyst for economic growth. We will create a step-change for rail capacity and connectivity. We will be good neighbours and protect the natural environment. We will foster skills and create new employment opportunities. We will set new standards for health, safety, and security for the construction and operation of the railway. We will deliver value for money to the taxpayer. We will set new standards for customer experience. Through these strategic goals we are focusing on legacy benefits, the lasting changes for the public and the country. These are the benefits to our future customers, the communities living in areas served by HS2 trains, the construction and engineering industries and the environment in which the railway is built. We are directly accountable for our core benefits, and it is our responsibility to work with our supply chain to deliver these. However, our role is also to enable others to achieve the wider benefits HS2 will bring, from the opportunities provided by increased capacity and easier travel, to the redevelopment and regeneration around our stations. Much of this is being led by Local Authorities, Combined Authorities and Local Enterprise Partnerships (LEPs) up and down the country, to make the most of HS2 coming to their area. The realisation of our benefits are spread across the life of the project, from design, to construction, and finally once the railway is operational. 9

12 The benefits HS2 Ltd will deliver continued Key Wider benefits Core benefits Dis benefits The construction of HS2 will have unavoidable impacts on the environment and communities along the route, but we are committed to being a good neighbour and providing a positive legacy. We have committed to no net loss to biodiversity, and the route will include extensive mitigation, to reduce noise from the operational railway, including earthworks, cuttings and barriers. Our rolling stock will perform to the highest standards of noise reduction in the world helping HS2 to be a good neighbour to our communities. We recognise HS2 will cause disruption to the road and rail network, but we are committed to working to minimise this disruption as far as possible. We are designing our stations to support local growth in jobs, housing and investment around the sites. Beginning HS2 s environmental legacy by growing the 7 million trees and shrubs we will plant alongside the railway. We recognise HS2 will cause disruption to the road and rail network, but we are committed to working to minimise this disruption as far as possible. Innovation in the supply chain will ensure we deliver the railway efficiently. Improving diversity in the workforce, training apprentices and developing the UK construction and rail industry talent pool. Improving diversity in the workforce, training apprentices and developing UK construction and rail industry talent pool. During Phase 2b construction we will continue to develop the UK construction and rail industry talent pool, training further apprentices. We expect our supply chain to achieve excellence in their Equality, Diversity and Inclusion (EDI) practices. SMEs will get further contracts through Phase 2b and the Supply Chain. Growth in jobs, housing and investment continues around now open Phase One stations and the Crewe hub. Small and Medium-sized Enterprises (SMEs) winning contracts with HS2 Ltd and in the Supply Chain. Improving health, safety and security standards throughout our supply chain. Construction 10

13 HS2 will provide 3,000 long-term operation and maintenance jobs as well as a lasting skills legacy for future infrastructure projects in the UK. Journey times and rail reliability improve further on the full HS2 network, offering more opportunities to reduce crowding and for passenger and freight services on the existing network. Investment will continue to be drawn to the now fully open HS2 stations, providing more opportunities for regeneration, housing, and job creation. HS2 will be integrated with sustainable transport modes, such as existing walking, cycling and tram networks, as well as regional transport modes like the future Northern Powerhouse Rail. This will help to reduce carbon emissions for customers travelling to and from HS2 stations. When fully operational, ticket revenue will increase further, and the now fully opened HS2 stations will draw more revenue from commercial, retail and leisure opportunities around stations. Once fully operational, HS2 will provide seamless, accessible, fast and reliable journeys, to the highest international standards for passenger experience, and accessibility. Ticket revenue generated from HS2 services will provide return on investment as passenger use of rail increases. HS2 will leave a lasting Health and Safety legacy for future projects by raising the standard of our supply chain. The operational railway will also be designed to improve standards in passenger safety and the health and safety of our maintenance workforce. The HS2 Green Corridor will leave a lasting environmental legacy, linking habitats along the route, as well as providing new amenity space communities. HS2 will have impacts on the environment and communities along the route, but it will be designed so that any significant noise or visual effects from the operation of the railway will be mitigated, helping us to be a good neighbour to communities on the route. New HS2 services offer better accessibility and improve customer experience. Phase One and 2a HS2 services will reduce journey times, and improve rail reliability, reducing crowding and providing new opportunities to reduce crowding and for passenger and freight services on the existing network. Operation 11

14 The wider benefits of HS2 Once the network is completed, HS2 will directly serve over 25 stations, connecting around 30 million people living in regions served by HS2 this represents almost half of the population of the UK (45%). Regions are using their local knowledge to identify local strengths and work out how the improved connectivity HS2 will deliver can support local regeneration and growth ambitions. Regional teams are continuing to develop their plans and HS2 Growth Strategies are being developed for many of the cities the new railway will serve. This will help the country to realise the wider benefits of HS2 through economic growth and a rebalanced economy. So we are already seeing this across the route: Phase One, between London Euston and Birmingham, will see faster trains onward to Glasgow, in under 4 hours. By 2027, and the opening of the expansion of the network to Crewe, the journey between Glasgow and London will be reduced by 45 minutes compared to today. By 2033, journey times between London and Glasgow and Edinburgh will be reduced to around 3 hours and 40 minutes. The Lancashire LEP believes HS2 services to the area could help provide an extra 600 million for the region, and 3,000 additional jobs in Preston and South Ribble alone. The Darlington Borough Council estimate that its HS2 Growth Hub can provide over 3,000 new jobs and a 130 million a year boost to the Tees Valley City Region. The West Yorkshire Combined Authority believes 40,000 jobs and 21,000 homes could be created. The Greater Manchester Combined Authority estimates reduced travel times and increased business productivity from HS2 will support 180,000 new jobs in the region. Redevelopment plans at Manchester Piccadilly include 13,000 new homes The Constellation Partnership predicts HS2 will help the creation of 100,000 new homes and 120,000 new jobs across the region, including Crewe, Stoke and Stafford. The East Midlands HS2 Growth Strategy estimates that HS2 could bring 74,000 new jobs. The West Midlands Combined Authority estimates HS2 could boost the economy by 14 billion and support over 100,000 jobs. Around Curzon Street Station, Birmingham Council has regeneration plans with the potential to create 36,000 jobs and 4,000 new city centre homes. At Birmingham Interchange, UK Central are designing a new business and leisure district to deliver 16,000 jobs and 1,900 homes. The Old Oak Common and Park Royal Development Corporation has set out plans for 25,500 new homes, together with up to 65,000 new jobs around the station. Euston Station Master Development Partner is working with Network Rail and Camden Council to deliver a unified masterplan to unlock the full potential of the area, aiming to create 19,000 jobs and 1,700 homes. 12

15 1 Edinburgh Glasgow Carstairs Lockerbie Key Existing rail network High speed lines and stations Carlisle Penrith Oxenholme WEST COAST MAIN LINE Newcastle Durham EAST COAST MAIN LINE Lancaster 2 Darlington 3 Preston 4 Leeds York Liverpool Runcorn Wigan Warrington Manchester Piccadilly 5 Manchester Airport Sheffield Midland Chesterfield Crewe 6 7 East Midlands Hub Stafford Birmingham Curzon Street 8 Birmingham Interchange Old Oak Common 9 London Euston Based on indicative train service specification as at April Final HS2 timetable subject to consultation

16 CEO s introduction The past year has seen HS2 take root in the heart of Britain. From our headquarters in Birmingham we have driven forward progress across all three phases of this project. 14

17 The combination of our ground investigation and enabling works, and the appointment of our Main Works Civils Contractors has taken Phase One a significant step nearer the point where construction begins. Equally the start of the hybrid Bill Parliamentary process for the section from Birmingham to Crewe (Phase 2a) was another important milestone as is the announcement of the route from Crewe to Manchester, and from Birmingham to Leeds. In each case the project has received substantial cross-party support both at Westminster and regionally support which we do not, and never will, take for granted. As a company we are conscious of the need to keep striving to earn that support each and every day, and when we do make mistakes, as we have in the past, we will not just correct them, but change to ensure they do not happen again. In the last year we have made substantial improvements to our controls systems to address weaknesses correctly identified by the National Audit Office. It has also meant all staff undergoing a re-induction process led by senior management to underline the importance of our public accountability. And that accountability isn t just about showing that we care for how we spend the public s money, important as that is. It also means showing that we care for those we impact during both construction and the operation of the railway. And that we also care for the environmental and economic legacy we will leave for this and future generations. Equally important to us is the health and wellbeing of those we work with, whether directly in the organisation or indirectly through the supply chain. We have continued to improve our health and safety performance over the past year and as a result we have had no serious incidents or injuries to anyone in our workforce. We will continue to drive a culture of proactive reporting of safety hazards so that we can sustain this performance in the year ahead. As we mobilise more women and men in our workforce for the start of construction on Phase One, their health, safety and wellbeing will remain our first priority. This plan sets out the progress we have made in our delivery of the project over the past 12 months and how we intend to maintain this momentum in the coming three years. It shows how we are: preparing the way for HS2 through our procurement activities and processing and developing hybrid Bills for Phases 2a and 2b; getting the job underway, as our Main Works Contractors start on site; equipping our organisation to deliver; maximising the benefits and minimising impacts of the future railway; fitting HS2 into the national landscape; delivering a service; and creating a positive HS2 legacy for the country. The scale of the task is immense and I am grateful to everyone who works on the HS2 project for their continuing hard work and commitment. As an organisation we remain absolutely focused on being able to deliver a railway that will stand the test of time and that history will judge to have made a real and positive difference to Britain, economically, socially and environmentally. Mark Thurston Chief Executive Officer 15

18 What we have done in 2017/ / / / /21 Preparing the way During the past 12 months HS2 Ltd has made real progress in preparing the way for all phases of the project. As we have transitioned into delivery and taken on our role as a responsible client, the scale of the project has meant we are continually looking to innovate in the way we manage our contracts and approach our procurements. In July 2017, we successfully procured our Phase One Main Works Civils Contractors to build the route between Birmingham and London 6.6 billion of contracts split into seven work packages that will be overseen by four Joint Venture (JV) companies. Following an extensive period of pre-tender market engagement, the four successful Joint Ventures were a blend of major UK contractors and European contractors with years of experience of building high speed rail on the continent. The JV structure provides us resilience in case an individual contractor experiences trading difficulties. The Phase One Main Work Civils Contracts (MWCC) work will support around 16,000 jobs and generate a further 7,000 contract opportunities in the supply chain, 60% of which we expect to go to Small and Medium-sized Enterprises (SMEs). By using Joint Ventures with international expertise we built in more resilience into our supply chain, reducing risks to the programme and enabling us to better withstand future uncertainties. We will continue to look at ways of strengthening our supply chain over time, for the benefit of our programme but also for the benefit of the UK s future infrastructure pipeline. We took a significant step closer to securing the permissions needed to build Phase 2a, the route between Birmingham and Crewe, when our second hybrid Bill was deposited in Parliament in July 2017, and received overwhelming support at Second Reading at the end of January Also in July 2017, the Secretary of State announced his decision on Phase 2b, the route from Crewe to Manchester and from Birmingham to Leeds. This allowed us to launch the consultations for the initial route designs that will be included in our third hybrid Bill in To support the preparation of the initial designs, a team from Bechtel, our Phase 2b Development Partner, was embedded within our Birmingham office, allowing us to draw on their expertise of delivering other major infrastructure projects like the Channel Tunnel, HS1 and Crossrail. As our supply chain begins to mobilise the 16,000+ people we will need to design and build Phase One, we are addressing the skills gap in the UK construction sector through our apprenticeship programme. The National College for High Speed Rail opened its two campuses, in Doncaster and Birmingham, on 9 October At full capacity, the colleges will be able to train 1,000 students a year, ensuring that the skills needed to support the delivery of HS2 are in place and able to fulfil demand for future national infrastructure projects. 16

19 As part of our Enabling Works, we are conducting the largest series of archaeology investigations ever undertaken in Britain, beginning at St James Gardens in Euston and at Park Street near Curzon Street Station in Birmingham. This will ensure we use the unrivalled opportunity HS2 presents to deepen our understanding of our national history. In January 2018 we started the procurement process for the contracts needed to deliver critical elements of the railway s infrastructure, including the power system that will run the trains, 290km of track systems, as well as the design, installation and testing of HS2 signalling systems and equipment. 16,000 jobs supported by Phase One Main Works Civils Contracts Getting the job underway construction so far Before we can begin building bridges, tunnels and tracks we need to understand the ground conditions we will be working in. Our ground investigations teams have completed millions of lab tests from ground investigations across some 8,000 locations up and down the route. These ground investigations are helping us design the safest possible railway, whilst determining the most efficient construction techniques for different ground conditions along the route, helping us to deliver value for money to the taxpayer. Our Enabling Works Contractors have continued to carry out key ecological surveys to understand what species are in the existing landscape, so that we can appropriately respond in our design and construction plan. This has included relocating wildlife into suitable habitats outside of the footprint of the future railway. At the same time our Enabling Works Contractors in London have been carrying out key demolitions of the derelict National Temperance Hospital and disused tram shed to the west of Euston Station, to prepare the ground for the future Phase One platforms. Discovery of time capsule National Temperance Hospital 17

20 Case Study Preparing the ground HS2 has carried out the UK s largest ever programme of ground investigation surveys. This scientific look into what s beneath the surface of the earth involved testing at over 8,000 points along the Phase One line of route. Working with different contractors, more than a million laboratory tests have been carried out on the soil, rocks, groundwater and contamination up to 120 metres below ground level. Tens of thousands of field surveys were carried out using a wide range of cutting-edge technologies such as ground penetrating radar. All these tests give us the best possible information as to the likely ground conditions when construction begins. This has helped shape our plans for how we build the track, bridges, tunnels and viaducts in the safest and most efficient way. As well as ensuring value for money for taxpayers, the unprecedented scale of this groundwork has accelerated the development of the UK Ground Investigation industry as a whole. HS2 is supporting further scientific research in this area through our collaboration with PhD students at the University of Birmingham. 18

21 What we have done in 2017/18 continued HS2 Corporate Plan / / / /21 Equipping our organisation to deliver Because we are responsible for designing and building HS2 across three different phases, HS2 Ltd will always be a company that needs to be both agile and flexible. This year we strengthened our organisational processes and controls to reflect that multi-dimensional challenge. In April 2017 we launched our new corporate structure that reflected the need for HS2 Ltd to transition from development to delivery on Phase One, whilst continuing to prepare the Phase 2a and 2b legislation. In July 2017 we acknowledged the mistakes we made in processing redundancies, as highlighted in a National Audit Office report into our Annual Accounts. We have now made significant improvements to our controls environment, including the roll out of a new governance regime with clear delegations and accountabilities. Every member of staff has been re-inducted to underline the importance of observing these controls. We also completed the relocation of our headquarters to Birmingham, the city that will be at the heart of the country s new high speed rail network. By establishing ourselves in Birmingham, where we now have almost 900 staff, we are living our strategic goal of rebalancing the UK s national economy whilst delivering value for money to the taxpayer. Across HS2 Ltd and our supply chain we are continuing to set new standards for health, safety and wellbeing through our Safe at Heart policy and the development of our Supply Chain Health and Safety Standard. These standards focus on a new approach to occupational health, viewing health like safety and being proactive in supporting mental health. 19

22 Case Study Innovation in Health and Safety Health and Safety is a core value for HS2, but that is not just about caring for our workforce, our passengers and the public, it also means setting new industry standards, finding innovative solutions to set the bar higher than ever before, creating an environment where no one gets hurt. In December 2017, HS2 and the Transport Systems Catapult ran a two-day Hackathon attended by more than 100 experts, academics, programmers, developers and designers who came together to develop solutions to innovation challenges. One of the winning ideas came from a team called Sensorail who focused on how to improve the safety inspections process for rails and other systems. Sensorail s innovation of mounting sensors on the trains themselves to detect and pinpoint where possible faults may develop could change the way traditional inspections processes work, improving safety, reducing operational costs, and disruption for passengers. HS2 Ltd are now working with Sensorail to help them develop this exciting innovation. 20

23 What we have done in 2017/18 continued HS2 Corporate Plan / / / /21 Maximising benefits, minimising impacts In September 2017 we launched our HS2 Community Engagement Strategy setting out our commitment to be a good neighbour by respecting our communities and the environments in which they live. That means listening to concerns and taking steps to both mitigate disruption wherever possible, and engage with people and businesses to build long-term relationships. In January 2018 we announced the first of six grants totalling more than 245,000 from the Community and Environment Fund (CEF) and the Business and Local Economy Fund (BLEF) to support local community projects. In addition, 450,000 was awarded to a project in Wendover Woods in March 2018 bringing the total 695,000 for community projects. A further 5 million has also been made available to help communities along the HS2 Phase 2a route from the West Midlands to Crewe, bringing the total available funding to 45 million. As with Phase One, the 5 million will be available to applicants following Royal Assent of the Phase 2a Bill. The transformational effect of HS2 is already becoming evident in the station cities HS2 trains will serve. Investment is being drawn in, regenerating areas and creating great places to live, work and visit, delivering economic benefits even before it is complete. Local areas are also building HS2 into their plans. HS2 Growth Strategies are in place for the Phase One stations at Euston, Old Oak Common, and the West Midlands. Similar strategies are being developed along the proposed Phase Two route, in Greater Manchester, Leeds, South Yorkshire, the Constellation Partnership and for the East Midlands. Play area at Helmdon pre-school supported by the Community and Environment Fund In December 2017 we published HS2: Getting the Best out of Britain. The report analysed the barriers to improving productivity in the Midlands and the North and found that poor connectivity was a major factor, restricting access to talent, markets, professional services, finance and the supply chain. HS2 will transform this by working with Government and other partners to integrate with existing transport networks and align with each region s distinct growth strategy for the future. Improved connectivity will open up access to new markets, skills, services and suppliers to businesses across Britain, helping to rebalance our national economy. 21

24 What we have done in 2017/18 continued 2017/ / / /21 Fitting HS2 into the national landscape Throughout the design stages of HS2 we have been mindful of the impact on the environment. Our goal is to use the once-in-a-generation opportunity that HS2 offers to create a green corridor linking natural habitats along the line of route, as well as developing new amenity space for our communities. As part of the commitment to build the railway with no net loss to biodiversity, we have awarded a contract to grow seven million new trees and shrubs on Phase One of the railway. In January 2018, applications opened for the first 1 million of a 5 million HS2 Woodland Fund. The money will support the restoration of existing ancient woodland sites and the creation of new woodlands supporting wildlife habitats and environments for people to enjoy. HS2 creates opportunities for us to develop worldclass design and construction techniques, set within a sustainable framework that respects our communities and the environments in which they live. In January 2018 we launched an outline design concept for the Colne Valley Viaduct, developed by independent specialist architects in consultation with the Colne Valley Regional Park Panel and the HS2 Independent Design Panel. The outline design concept provided a basis for wider discussions with the local community which we began in March; this will help to inform the development of a final design. But we are also mindful of the impact on residents, particularly where construction or operational noise will affect them, or where construction traffic will impact on their local roads. We have been working closely with local authorities and residents along the line of route to develop and begin the roll out of noise insulation to residents who may be impacted. In addition, we are working with local authorities to develop local traffic management plans, helping us to minimise disruption as far as possible. HS2 Ltd staff at a plantation in the National Forest 22

25 Delivering a service We undertook the pre-qualification process and shortlisted preferred bidders for the main design and construction of Phase One rolling stock. In addition to starting the procurement, we prepared the reference train design and technical and commercial documents ready for the Invitation to Tender, which will go out in 2018/19. By the end of 2017 we had developed operational requirements for the Traffic Management, Command and Control Systems; completed the customer proposition to the detail required to inform rolling stock and station design; confirmed our Asset Information Management Systems strategy; and set the contracting model for Infrastructure Management. Creating a positive HS2 legacy for the country In October 2017 the National College for High Speed Rail opened its campuses in Doncaster and Birmingham. The College provides students with the technical skills required to build HS2, and offers new pathways for the next generation of engineers starting a career in transport infrastructure, while also training and upskilling the existing workforce. Delivered to its full potential, it will transform the future of the rail industry and of skills-based vocational training in the United Kingdom for now and the future. Throughout 2017/18 we have worked closely with DfT to support their procurement of the West Coast Partner (WCP). This resulted in us getting the Collaboration Agreement approved through HS2 governance by the end of the year to support DfT releasing the WCP Invitation to Tender (ITT) on 27 March

26 Measuring our performance in 2017/ / / / /21 In 2017/18 we identified 13 key performance indicators (KPIs) that the Company used with our Board to track our performance across a range of measures that cover delivery of the benefits, delivery of the programmes and the health of the Company. Category KPI Target How we have performed Benefits 1 Benefits 2 Contribution by contractors to benefits delivery, for example, number of apprenticeships relative to workforce number. Contribution by HS2 Ltd to benefits delivery, for example, number of apprenticeships relative to workforce number. Report on progress against all relevant measures and put in place mitigations for any targets or benchmarks that are off track. Report on progress against all relevant measures and put in place mitigations for any targets or benchmarks that are off track. 100% of reported measures performing within tolerances against target. 100% of reported measures performing within tolerances against target. Health and Safety Enterprise-level Health and Safety Index. The average across all measures in the index is >=2.2. Overall Enterprise Health and Safety Index score is The index is made up of a number of indicators including: Near Miss Reporting Rate; Workforce Engagement; and Weighted Incident Rates. Therefore there are a number of factors that will influence the outcome. Our 2017/18 score is indicative of our current performance and maturity at this stage of the project. The original targets were benchmarked against a number of established programmes and companies. One of the main reasons for the current lower score is due to the type of work HS2 is currently undertaking, which is primarily Design rather than Construction and therefore mostly office based. Cost Performance 1 Projected programme costs. All works to remain within overall Spending Review funding envelope and the target price for each phase. The forecast estimate at completion (EAC) remains within the overall spending review funding envelope. Cost Performance 2 Budget management. Target for annual spend to be within 1% of annual budget, as adjusted at Q3. Full year outturn (annual spend) = 0.72% under annual budget. Schedule Performance 1 Milestone performance. Deliver to the plan of annual milestones as set out in the Level 0 schedule. 15 of the 16 milestones have been delivered to date. The one remaining milestone (Health and Safety Passport development) is now forecast for early 2019 as agreed with NR & TfL. 24

27 Category KPI Target How we have performed Schedule Performance 2 Phase One Main Works Civils Contract design progress. All Main Works Civils Contractors to deliver Stage 1 designs as per agreed schedule. The seven Main Works Civils Contractors have successfully completed gateway 2 assessments and overall are on target for the stage 1 delivery schedules. Quality Performance 1 Percentage of technical requirements and guidance formalised in the Programme Requirements Specification (PRS) and specified into contractual documentation. 100% of necessary requirements, tested at Phase One, Phase Two and Railway Operations programme gates and specified into contractual documentation. Based on the Project Requirements Specification we have issued, and are developing at present, we are on track. Quality Performance 2 Percentage of PRS technical requirements and guidance adopted into programmes and procurement. Percentage Design Panel recommendations acted on relating to agreed benefits. 100% of requirements, tested for compliance at Phase One, Phase Two and Railway Operations and overall programme gates. Acted on 80% of Design Panel recommendations relevant to the 2017/18 period. A system is in place for technical requirements to move directly into the supply chain once procurements are in place; we have achieved 100% for Early Works Contracts and Main Works Civils Contracts. 95% all Design Panel recommendations acted on, ahead of target. Community Engagement Community Engagement Index. Establish a Community Engagement Index agreed with the Board and begin reporting. Complete achieved as part of the first iteration of Community Engagement Dashboard reporting. Equality Diversity and Inclusion Percentage of staff with each protected characteristic. Report on all protected characteristics. Exceed industry benchmarks where available: women (13%); black, Asian and minority ethnic (BAME) (6%); and disability (3%). Women 35% BAME 16% Disabled 6% (based on staff requesting workplace adjustments at a moderate or substantive levels) Staff Engagement Staff engagement index. Improve on previous year s score in the staff survey, 63% in An all employee pulse survey was run in March This survey almost doubled the number of respondents and widened the response pool to all core HS2 employees. We expect engagement results to show a steady improvement when we run the full survey in Q4 of Company Capabilities Delivery of the Capability Programme. Complete the Capability Programme workstreams by end December Complete Capability Programme concluded end of December

28 What we have learned in 2017/ / / / /21 Over the last year the organisation has matured and we have learned important lessons about how we approach the task ahead of us. These learnings have helped us to improve our organisation to ensure we are better equipped to deal with the challenges ahead. That has meant changes in the way we are structured, our systems and processes, the culture and behaviours of our staff, and how we measure our performance. A number of our main learnings from the year are set out below: 1. At the end of 2016 and early into 2017 we reorganised the Company and relocated our headquarters to Birmingham, ensuring we had the right structure in the right location before we began the construction of Phase One. We learned some important lessons from the mistakes made in handling redundancy payments from the restructure and relocation, these were identified by the National Audit Office (NAO) and Government Internal Audit Agency (GIAA). The issues that the NAO and GIAA audits identified within our HR and Finance functions have been progressively addressed over the course of the year. We have strengthened our purchasing controls and oversight of expenditure ahead of the implementation of a new Enterprise Resource Planning system in 2018/19. Both the NAO and GIAA have provided positive feedback on the resolution of all the HR concerns they raised. This has led to a greater level of maturity of the Company, and the processes and systems we have put in place will put us in good stead for the future. 2. In the past year we have also reset our Corporate Governance framework within HS2 Ltd, aligning it with the new organisational structure and decentralising authority. This has allowed greater levels of responsibility and accountability for individual decision makers within their roles, whilst also providing clearer authority and purpose across all of our governance meetings. Training on the new governance regime has been rolled out to staff as part of a company-wide re-induction programme, helping to embed the changes across the organisation and ensure all staff at HS2 are aware of their responsibilities and the processes they need to follow to seek approvals. Alongside this, we have continued to improve our ways of working with the HS2 Ltd Board and the Department for Transport (DfT). We are now agreeing new communications protocols with the DfT to ensure that we have a clear process in place for seeking any formal approvals. Adding to these new communication protocols, a revision of the Framework Document will provide clearer guidance on the responsibilities of both HS2 Ltd and the DfT respectively. 3. As the scale and complexity of the Company s activities have grown over the past year it has become apparent that we needed to improve our community engagement approach to match it. In response to that challenge, we published our Community Engagement Strategy in September 2017 and, as part of the commitments we made in that document, we established a new Community Hub within our Two Snowhill office. The Hub provides a first point of contact for members of the public and brings together all elements of community engagement from across the project into one central location. The Community Hub has also provided benefits to our staff, creating a space for the wider business to engage and become aware of how we are working with our communities to be a good neighbour. In March 2018 we also introduced a new HS2 website, and we are continuing to develop our local area engagement plans across the route with tailored information to help make us more accessible to our communities. 26

29 4. Over the past year we have looked carefully at the retention of our staff. We have achieved an increase in the retention of our staff, with turnover now at 13%, improving on the figure from last year of 18%. We have also looked at our workforce split between HS2 employees and the use of contractors. 76% of our workforce are now direct HS2 Ltd employees delivering a reduction in the use of contractors. We focused on improving the diversity of our workforce with 35% of the HS2 Ltd workforce women, 16% from a BAME background and 6% reporting a disability. We made steady progress on increasing the proportion of women in leadership roles with women now accounting for 20% of head of function roles and 17% of director level roles. By improving our staff retention, reducing the number of contractors that we are reliant on, and improving our workforce diversity, we are improving the retention of knowledge and skills within the organisation, whilst reducing recruitment and contractor costs helping us to deliver better value for money. At HS2 Ltd we are committed to building on our experiences and, where we make mistakes, learn the lessons and make changes to the way we work. The changes we have made over the past year are improving our resilience and capability as an organisation; how we communicate and engage with our communities; and also how we work with our sponsor the Department for Transport. Ensuring we continue to mature our organisation as the HS2 Programme gains complexity is an important part of making sure we remain equipped to deliver the railway and its benefits to the country. 5. We have recognised the need to keep improving and increasing the levels of engagement with staff across the organisation to help them understand their value to the Company. In the past year we have renewed our approach to staff communications, with regular all staff briefings to give our teams the opportunity to hear from colleagues from across the project and pose questions to the Executive directly. Our employee Work Place Forum is continuing to demonstrate its effectiveness in communicating issues from across the project up to the Executive, as well as supporting the flow of information back down the organisation. The improvement in communication culminated in the re-induction of all our staff in January and February. This focused on reinforcing and further developing the right habits and the right cultures within the HS2 Ltd workforce. This renewed focus on staff communication has helped to create a greater sense of understanding and purpose, whilst also helping staff connect with their colleagues. 27

30 What we are doing in 2018/ / / / /21 Preparing the way By the start of 2018/19 our property portfolio will have grown to include the management of over 720 properties. We have let over 500 of the properties we purchased, with tenants in over 80% of them. This will continue to provide an important return to the taxpayer for the acquisitions we have made, helping to support our goal of delivering value for money. We will support the Government to complete the Full Business Case for Phase One in February 2019, reconfirming the benefits to the country and the target price for Phase One. To support clarity in decision making, we will develop the baseline for the whole life costs and benefits. We will invite a shortlist of suppliers to bid to design and build the Phase One rolling stock this year. We want to deliver some of the world s most advanced trains, engineered to provide seamless, accessible, fast and reliable journeys. We will also insist that the successful bidder adheres to our values and commitments to maximise skills, employment and growth opportunities. Alongside this procurement, we will continue to seek the Parliamentary permissions we need to build Phase Two of the railway. By the summer we expect to complete our initial preliminary designs for Phase 2b, bringing us a step closer to delivering the transformative benefits of HS2 to in the East Midlands, South Yorkshire, as well as Northern cities like Leeds, Manchester and beyond. In parallel to this work we are working closely with DfT, Transport for the North, the Constellation Partnership and Midlands Connect to develop concepts to meet the aspirations of Northern Powerhouse Rail and the Midlands Engine. The Secretary of State has already announced work on the passive provision of junctions to allow the interaction of new infrastructure and HS2. As the details of these networks become clearer we will, as required, adjust our designs and our plans to incorporate these and maximise the benefits that HS2 can deliver. Leeds Station concept 28

31 Getting the job underway construction Last year we confirmed our Main Works Civils Contractors, and by the end of the year we expect them to complete their scheme design and the associated Schedule 17 planning approvals, meaning we can issue a Notice to Proceed under the contract giving them the go-ahead to start detailed design and construction works. In our role as a responsible client we will ensure we deliver value for money by creating the environment our contractors need to seek innovative solutions and generate greater levels of collaboration. We will make sure they deliver the railway in the most efficient way possible and spread best practice both from the global construction industry and from the innovation which HS2 is driving. At the same time we will set the standards and behaviours we expect from them most importantly in how they approach health and safety standards and engage with our communities to minimise disruption during construction. Equipping our organisation to deliver Throughout the year we will continue to develop our People Plan. This will help us ensure we have the right people to give us the capability we need to deliver the programme as we continue to transition into our delivery function for Phase One, and also step up the design and consultation aspect of Phase Two. Our People Plan will help us to be flexible and to respond to the challenges ahead, whilst remaining the right size, as a company, to deliver value for money to the taxpayer. It will set out how we will develop an effective organisation and our delivery capability; develop a talented and diverse workforce and inclusive performance culture; and provide innovative and professional HR services. As our organisation develops, we will maximise the benefits of emerging digital technologies. In October 2018 we will deploy a new cloud-based Enterprise Resource Planning (ERP) system to ensure effective financial, procurement and people management as HS2 grows. We are continuing to champion the deployment of a cloud-first IT strategy to ensure flexibility and value for money. We will focus on secure and effective collaboration within HS2 and between HS2, our external stakeholders and our Joint Venture supply chain. Cloud-based data platforms will enable the construction of a Digital Twin of HS2, with information used to drive the design, build and operation of the railway. We are committed to developing our workforce, to get the best we can out of them and provide them with the opportunities to grow with the Company. During 2018/19 we will establish succession and talent management plans for HS2 senior leaders, ensuring we are able to cover the critical roles which would pose a risk to the Company if there were no successor in place. 29

32 Case Study A positive legacy for communities We are committed to being a good neighbour so we are working with local communities to provide a positive, lasting legacy in their area. Our approach to landscape design commits us to the provision of new public spaces, parks, recreation grounds, play areas and public rights of way. Every location is unique, and local communities know best what will work for them. Through HS2 s community funds, 45 million is available for local regeneration, environmental and social projects along the Phase One and Phase 2a route. Castlehaven Community Association in the London Borough of Camden is receiving support for its Greengage community initiative that will see a team of volunteers organise events like clean ups and help develop a local nature park. In Northamptonshire, HS2 funds have helped improve the play area for children at Helmdon Acorns pre-school, where a new outdoor play surface has been laid and an area for bikes and scooters built. 30

33 What we are doing in 2018/19 continued HS2 Corporate Plan / / / /21 Maximising benefits, minimising impacts By the end of the year, we plan to have identified and quantified commercial development activities for our stations and depots across all Phase One. In addition, we will have completed our station commercialisation strategy to inform the provision of retail, leisure and business space within our stations. This will help to maximise local regeneration opportunities in the areas surrounding HS2 stations, creating places people enjoy visiting for more than just travel reasons, and drawing investment that will create thousands of job opportunities for local residents in and around our stations. We are always very aware of the impact the railway will have on our communities and the Phase 2a hybrid Bill Select Committee process gives individuals and businesses who are directly affected by HS2 the chance to raise their case for amendments to the initial design or request specific mitigation measures to address their concerns through petitioning. This is an important part of the process of refining the scheme, listening to local opinions and, where we can, looking at what we can additionally do to minimise the impact of HS2 on local communities and the environment. Community engagement event Our focus this year will be to embed our approach to being a good neighbour throughout our workforce and supply chain, delivering a stepchange in our stakeholders experience. Our first Community Engagement Public Progress report will be published in the summer, and as set out in HS2 s Community Engagement Strategy. We will then publish reports every six months measuring our progress against our ten Community Commitments. 31

34 Case Study Protecting the countryside Working with wildlife experts and bodies such as Natural England, we are planning a network of woodlands, meadows, wetlands and ponds. This will help restore and replace any wildlife habitats affected by construction, including new setts for badgers. HS2 s green corridor along Phase One is estimated to have more than twice as much woodland and 30% more wildlife habitats than originally acquired. At Windmill Hill in Warwickshire, the new railway will be hidden in a cutting some 15 metres below ground level. We are planting new woodlands and creating new habitats for creatures such as bats, slow worms and adders. In addition, 12 breeding ponds are being dug for great crested newts with places for them to hibernate. A new green bridge will be built over the cutting blending into the landscape. 32

35 What we are doing in 2018/19 continued HS2 Corporate Plan / / / /21 Fitting HS2 into the national landscape From September, we will consult on a Draft Environmental Statement for the Phase 2b route. It will set out the environmental impacts of the route and include our proposals for avoiding, reducing or managing these effects from managing air quality to protecting local wildlife. The consultation will allow people to contribute their views on the environmental information we set out, which can then be considered during the development of the designs for the route. Using innovative design and a considered approach to the environment, we are determined to do our best to mitigate the immediate impact of construction and also the enduring impact of HS2, once the railway is built, by establishing long-term benefits to local people. We will create a green corridor up and down the centre of the country. Working with local and central Government, as well as our contractors, we will provide quality amenity spaces for our local communities. We have adopted a challenging 50% whole life carbon reduction target for the design and construction of our Phase One civil, station and railway system assets. We will continue to embed carbon reduction targets into appropriate procurements and work with our contractors to deliver lower carbon solutions. Alongside this we will measure and monitor performance to determine progress against our ambitious carbon reduction targets. 33.4km 2 total habitat of the green corridor over 30% more than originally acquired Following best practice from around the world, from Q our HS2 Art Strategy will develop innovative ways to integrate our hoardings in a diverse range of urban and rural settings, promoting and celebrating the unique identity of each area. Our Art Strategy centres on us being a good neighbour and providing the best possible environment to communities during construction. 33

36 Case Study Creating a diverse and highly skilled workforce As we build and deliver HS2, up to 30,000 people will be working at the peak of construction. Our forecasts suggest that HS2 Ltd and our supply chain may face challenges in recruiting the required labour and skills from the existing construction and railway sectors. To make the UK s infrastructure project pipeline a reality, we need to expand the talent pool reaching out to disadvantaged groups and those previously under-represented in the industry such as women and BAME groups. HS2 contractors are already obliged to report on the inclusivity of their workforce and to ensure all job vacancies are widely advertised and accessible though services that support under-represented or disadvantaged groups. To go further, HS2 Ltd is developing a jobs brokerage service designed to create sustainable opportunities for young people, local people and those from diverse groups. We will be engaging with diverse customer groups to maximise the reach of this innovative service. 34

37 What we are doing in 2018/19 continued HS2 Corporate Plan / / / /21 Delivering a service In 2018/19 we will continue to support the DfT with the West Coast Partner franchise procurement for the company that will work with us to launch the first services on HS2. We will put in place the process we need to support the mobilisation of the contract and ensure that it is effectively embedded into the HS2 Programme by the end of To further our preparation for the operation of HS2, we will finalise the customer-focused requirements for the railway systems. Our ambition is to create a customer experience which can be tailored to individual needs, which means HS2 services need to provide flexibility and choice. The design of our services should be consistent and simple, providing an easy and enjoyable experience for all who use them. Creating a positive HS2 legacy for the country By the second quarter of 2018 we intend to publish our Skills, Employment and Education Strategy (SEES). This outlines our approach to maximising the economic benefits of the HS2 Programme via a co-ordinated programme of skills, employment and education interventions. It will set out how we plan to maximise the skills, employment and education impact of the HS2 Programme during its design, construction and commissioning phases along the entire route of the HS2 railway. In 2018/19 we will develop our approach to Corporate Social Responsibility. Being a responsible business means that we want to harness the passion and commitment of our employees for the public good. We are building a programme that will help promote Science, Technology, Engineering and Maths (STEM) skills and enable HS2 Ltd staff to get involved in projects that really matter to them through our volunteering schemes. We are committed to making sure that HS2 is a project that works for everyone in society. Our Responsible Business programme will therefore have a particular focus on schemes aimed at groups that can be disadvantaged in society, such as homeless people and children in care. 35

38 Measuring our performance in 2018/ / / / /21 As the HS2 Programme develops and matures, we will face different milestones and challenges. This Corporate Plan sets out how we will adapt to respond to these and how we will measure our performance against our objectives. Our KPIs will evolve and change over time to reflect the Company s priorities. We have identified a range of indicators for the following 12 months in the table below. We will review our performance against our targets throughout the year and report our progress quarterly to the DfT. At the end of the financial year, in an update to this Corporate Plan, we will publish our progress against the 2018/19 performance measures and update or set new KPIs for future years. Theme KPI Indicators Targets/measurement Hybrid Bill progress Phase 2a Phase 2a bill progress through Select Committee, to receive Royal Assent by December Resolve the majority of petitioners issues through the petitioning process. Preparing the way Hybrid Bill progress Phase 2b Progress towards depositing the Phase 2b bill by Q3 2019, to achieve Royal Assent by Compare the planned versus actual percentage complete of key milestones leading up to bill deposit. Rolling stock procurement Progress towards appointing our rolling stock supplier. Issue the rolling stock ITT to the market. Robust systems and controls Budget compliance. Year end outturn not to exceed 1% of Q3 forecast and to be no more than 5% less than forecast. Equipping our organisation to deliver Developing our capability and re-inducting staff Use of Earned Value Management to monitor cost and schedule performance. Demonstrate good governance and company ethics. % EV; 50% of Phase One delivery spend being monitored by Earned Value Management. Track the number of reports into our whistleblowing line ( breaches of ethics ) and number of fraud incidents; Ensure all new starters undertake governance training; and Respond to governance audit outcomes. Demonstrate sufficient capability across HS2 Ltd s enterprise functions to award, manage and monitor the Main Works Civils Contracts and deliver Phase One. Deliver the Enterprise Capability Programme to the satisfaction of the HS2 Ltd Board. Delivery of a new Enterprise Resource Planning system. Successfully implement modules due by October Succession and talent management Process in place for top two tiers of the organisation. Critical roles at the Executive and Senior Leadership levels have a defined and identified successor(s). Equality, Diversity and Inclusion Seek to exceed industry benchmarks where available. Percentage of staff who are women; are from black, Asian and minority ethnic groups (BAME); and are disabled. 36

39 Theme KPI Indicators Targets/measurement Getting the job underway construction Ensuring value for money Securing permission to progress from scheme design to detailed design and construction Demonstrate our commitment to efficiency and benchmarking. Phase One Main Works Civils Contract progress. (1) Provide DfT with the necessary information to support the Final Business Case for the Phase One route by end of December (2) Monitor progress against cost efficiency plans for the design and delivery of the Phase 2a and Phase 2b routes. Complete Gateway 6 for the Main Works Civils Contracts by end of March 2019 in readiness for approval to issue the first notice to proceed, confirming the target price and scheme design. Community Engagement Delivering on our commitments outlined in the Community Engagement Strategy. Deliver on the 10 Community Commitments outlined in the Community Engagement Strategy. Maximising benefits, minimising impacts Stations Onboard the Euston Master Development Partner. Progress on the agreement and implementation of the Euston MDP's business plan. Fitting HS2 into the national landscape Environment at the heart of HS2 Carbon emissions. Biodiversity. Forecast change in carbon footprint against baseline for Enabling Works Contracts (30%); and civil, station and railway system contracts (50%). Forecast no net loss in biodiversity. Quality performance Programme requirements. Act on 80% of Design Panel recommendations relevant to 2018/19 period. Delivering a service Health and Safety H&S Enterprise Index Score. The average across all measures in the index is >=1.2. Creating a positive HS2 legacy for the country Skills Delivering on our Skills, Employment and Education Strategy. Deliver on the programme of skills, employment and education interventions outlined in the Skills, Employment and Education Strategy. 37

40 Case Study New skills for the HS2 generation The National College for High Speed Rail (NCHSR) is helping to develop a new generation of engineers and skilled technicians to support the future ambitions of the construction and engineering industries. It will be 15 years until the full network is operational. Some of the apprentice engineers who will work on the final stages of the build may well be in primary school at the moment. We now have more than 100 education ambassadors, who are passionate about inspiring young people to consider Science, Technology, Engineering and Maths (STEM) related careers. HS2 will create 2,000 apprenticeships in a wide range of industries and disciplines during the life of the project through our extensive supply chain and within HS2 Ltd itself. Twenty-five apprentices have already started at HS2 Ltd. They are working towards Level 3 or Level 4 qualifications and will take an introductory course at the NCHSR before doing accredited courses in their chosen fields. 38

41 Managing uncertainty HS2 Corporate Plan To successfully deliver HS2 we have to manage our risks and uncertainties, and in order to achieve our strategic objectives it is critical we have an effective Risk Management and Assurance programme that is embedded in the way we work across HS2 Ltd. To support this approach HS2 Ltd has a suite of documents that set out its approach to Risk Management across the organisation. We will keep these under regular review as new risks emerge throughout the life of the project. We also work closely with the Department for Transport to ensure a collaborative approach to Risk Management across Government bodies for the delivery of HS2. With safety in our core values, we will not tolerate any risks that could result in injury or loss to the public, passengers or our workforce. Our reputation is influenced by our ability to manage public funds wisely and deliver HS2 on time and within budget and we will only accept low levels of risk in these areas. However, where there are opportunities to accelerate, or increase confidence in, programme delivery, reduce cost or enhance the passenger experience, we are prepared to accept commercial and operational risks. These include stimulating innovation, challenging industry and promoting best practice, both within the Company and our supply chain. Our main strategic-level risks are: achieving an overall engaging customer proposition including the effective integration with the national rail network; managing the underlying uncertainties in the environment for such a long-term programme. These include: political, legislative and standards changes; as well as economic changes such as inflation; effects on the strategic business case, from such issues as technology (including disruptive) changes and their effects on forecasting benefits; and changing demands and demographics; specific external events that may affect confidence in the approach being taken by HS2; maintaining appropriate and effective engagement with communities and across the significant range of stakeholders; our ability to develop, control and deliver the programme within the time constraints and funding envelopes; engaging an effective supply chain, appropriately incentivised with capacity, skills and structure to achieve the strategic goals; effectively managing health, safety and security for a programme of HS2 s scale and complexity; supporting achievement of wider programme integration and benefits realisation; and building, developing and maintaining our organisational leadership, capability and capacity. There is also the potential of corporate risks emerging, such as: disruption, fraud and bribery, governance and process compliance. The Company is designed and operates to mitigate all these risks. Our approach is supported by our risk management policies, strategy, processes and procedures. Tools such as horizon scanning and scenario planning are used to expand understanding and the capability to respond. 39

42 What we will do in 2019/ / /21 Preparing the way Early in 2019 we will prepare the technical specification for maintenance equipment needed for the operational railway and having defined our end State Asset Management System, procurement scope and strategy in 2018/19 in the mid 2019/20 financial year we intend to launch the procurement for our Asset Management Information System. Our approach will be to look at our assets both individually and as a system, using new technology, like remote condition monitoring, to predict risks and failures before they materialise. By embedding smart infrastructure, artificial intelligence (AI) and better sensory technologies we will know the realtime status and condition of our railway, helping us to make intelligent and accurate real-time decisions using the Asset Information Management System, without putting our staff in harm s way. Towards the end of 2019 we will select the suppliers for the design and construction of the railway power and track systems that we launched our tenders for in This includes the track and overhead line equipment, signalling, tunnel mechanical and electrical works, and control systems for the railway. When selecting the overall railway system for HS2, we will be looking for the suppliers who offer best whole life value solutions. Our procurement approach will require our primary contractors to create further opportunities for the supply chain, including SMEs, to compete for supply contracts. Reaching another major programme milestone, we will select the supplier for the rolling stock, concluding a nearly two-year international search for the best firm to design and build the trains that will run high speed services between Birmingham and London and continue on to destinations on the conventional network. As well as delivering our corporate goals for safety, passenger experience and delivering value to the UK taxpayer, our rolling stock supplier will also contribute to the delivery of HS2 s wider programme objectives. For example, testing, maintaining and servicing HS2 rolling stock fleet over its estimated year operational life will create long-term, high quality employment and apprenticeship opportunities across the UK. We will use the competitive bid for Rolling Stock to drive improvements in equality, diversity and inclusion within the rail engineering sector. We are aiming to secure Royal Assent of the Phase 2a hybrid Bill by the end of This is a landmark moment in the programme and will mark the end of the getting permissions stage of the 60km Phase 2a route. Prior to this we will invite a shortlist of suppliers to bid for the Phase 2a Main Works Civils Contracts. The knowledge we gain from the Phase One process will help us shortlist those suppliers who demonstrate best practice in innovation, safety standards and value for money. 40

43 By the end of 2019, we will have completed the next iteration of the designs and materials to allow a Phase 2b hybrid Bill to be brought forward. This will be the largest Bill ever deposited with Parliament setting out our proposals for the route from Birmingham to Leeds, and from Crewe on to Manchester. Phase 2b delivers some of the greatest connectivity and journey time savings, bringing Leeds and Manchester within an hour of Birmingham, opening new opportunities for people to work and commute helping to create the critical mass of talent, innovation and accessibility that will drive economic growth in the North and the Midlands. Getting the job underway construction Appointed in September 2018, our Construction Partners will start the detailed design and construction of our London stations at Euston and Old Oak Common in 2019/20. Our London stations will help to increase capacity, improve journeys and unlock opportunities for tens of thousands of new jobs and homes around them. Our Construction Partners will work with the Station Designers to deliver iconic stations that will be people-centred, with shopping, business and leisure facilities; accessible for all; future-proofed to accommodate future change; while also respecting each location s physical and cultural legacy. 41

44 What we will do in 2019/20 continued 2019/ /21 Equipping our organisation to deliver As part of the implementation of our People Strategy, wider talent and succession planning conversations will become a regular activity at all levels in the organisation, as well as across job families and functions. By the end of 2019/20 we will be getting ready to welcome our third intake of apprentices and graduates to HS2 Ltd, helping us to continue to nurture and develop the next generation of engineering talent and make the most of their skills and enthusiasm across the Company. Maximising benefits, minimising impacts In 2019/20 we will begin the process of securing planning permission for commercial redevelopment work around Euston Station. By unlocking these redevelopment opportunities, Euston station will become a catalyst for wider regeneration and growth in the surrounding area. Our ambition is to create a site of local, regional and national significance that will improve accessibility and create new public and green space across the wider Euston site. We will deliver this in a way that is sensitive to the rich history and diverse local community around Euston, ultimately designing and building a destination that is attractive not to just passengers but to locals and business too. Computer generated image of proposed HS2 Euston Station 42