Review of Network Rail's approach to financial risk assessment and management in its strategic business plans for PR18

Tender description

The backdrop for this requirement is Network Rail's reclassification as a public sector arm's length body, a revised funding structure for the CP6 control period , and a route level approach to our PR18 periodic review of Network Rail. We wish to commission a report on Network Rail's approach to assessing and managing financial risk in its strategic business plans for PR18. The report will feed into the work of ORR's Regulatory Finance team on the financial framework for PR18. We expect to publish minded to positions on a range of financial issues in spring 2018 and our draft PR18 determination in June 2018. The consultant should refer to the two PR18 financial framework consultations that have been published by ORR for context. The consultant should, referring to the sources of information listed in the ITT, assess the process Network Rail has used to estimate the amount of funding required for financial risk relating to: • support activities; • network operation; • network maintenance; • network renewals; • Schedule 4 and 8 costs ; • traction electricity and industry costs3; and • other single till income3 levels. at a route level and in total. Further information can be found in the ITT