Transport for London has confirmed a new financing agreement for the final stages of Crossrail, with the delayed project now expected to cost a further £1.6bn-£2bn.

The mayor of London, Greater London Authority (GLA), and Transport for London (TfL) confirmed they have agreed a financing package with the government, with Crossrail CEO Mark Wild also stating that the autumn 2019 opening date could no longer be committed to.

Crossrail has also announced the nomination of a new chairman following the departure of Sir Terry Morgan, with Infrastructure Projects Authority CEO Tony Meggs lined up for the role.

His appointment will now be ratified by the Crossrail board. Mr Meggs will step down from his current post at the IPA to take on this role.

Transport for London said the delay was likely to cost in the region of “between £1.6bn and £2bn” following a review by KPMG on the scheme’s costs.

The estimate includes an additional £300m, which was contributed to the scheme by the DfT in July, meaning between £1.3bn and £1.7bn will needed to be raised to complete the project.

It has been announced that mayor of London and the government have agreed a financial package to cover this shortfall.

The deal will see the GLA borrow up to £1.3bn from the DfT.

It will repay this from the existing Business Rate Supplement and Mayoral Community Infrastructure Levy.

The GLA will also provide a £100m cash contribution.

Transport for London said that because the final costs of the Crossrail project are yet to be confirmed, a contingency arrangement has also been agreed between TfL and the government.

This meant that there will be in the form of a loan facility from the DfT of up to £750m, should the higher end of the estimate be realised.

This new package will replace the need for the £350m interim financing package offered by the government in October.

Crossrail has also announced that former MP Nick Raynsford had been nominated as deputy chair. Mr Raynsford served as Minister for London on two occasions between 1997 and 2003.