The rail franchise contract was awarded to FirstGroup on 20 August 2004 and First ScotRail started operating services on 17 October 2004.
First ScotRail has been performing well and exceeding contracted performance benchmarks. In April 2008, Scottish Ministers activated a provision under the terms of the original agreement, to extend the First ScotRail Franchise by 3 years. By extending the contract to 2014, the Government is providing continuity for the ongoing improvement and development of Scotland’s rail services.
In April 2004, the then Scottish Executive took on full funding responsibility for the rail franchise, which currently costs around £281 million per annum in subsidy. The contract is worth around £2.5 billon for the duration of the franchise (10 years). Annual payments are linked to performance so they will vary.
Impact on rail services
It is part of the franchise agreement to maintain previous levels of service as a minimum.
As part of the extension, First ScotRail have also committed to delivering a £70 million programme of improvements for rail passengers across Scotland. This investment is in addition to the £40 million programme of improvements which First ScotRail committed to delivering upon taking ownership of the franchise.
The franchise contract requires that First ScotRail meet certain performance targets and standards. As part of the extension agreement, these targets have now been reset to encourage the franchisee to continue to grow Scotland’s railway.
The original franchise agreement, together with the franchise extension and any variations are available on the public register.
Consultation on Initiatives related to the ScotRail Franchise Extension
This consultation seeks the views of key industry stakeholders on how the Priced Options announced in the ScotRail franchise extension can be improved and how best they should be implemented. Members of the public who wish to contribute to the consultation should do so through one of the stakeholders listed within the document. The closing date for responses to the consultation paper is 30 November 2008.
