Metronet Cost Over-runs

Meeting: 
Plenary on 2006-12-06
Session date: 
December 6, 2006
Reference: 
2006/0401
Question By: 
Darren Johnson
Organisation: 
City Hall Greens
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

What are the options for covering the cost over-runs on the Metronet PPP contract, if the Government refuses to pay?

Answer

Answer for Metronet Cost Over-runs

Answer for Metronet Cost Over-runs

Answered By: 
Peter Hendy (Commissioner, Transport for London)

The £750m figure is a projected figure and London Underground (LU) advise that they do not wish to give credence to a figure that is yet to materialise.The PPP Arbiter found that Metronet had not acted in an economic or efficient manner or in line with Good Industry Practise, so LU expects Metronet's shareholders to bear the cost of any overruns,Londoners and Tube users should not be held accountable for any failure by Metronet and its shareholder companies to adequately plan, manage or execute the work they need to undertake to deliver the improvements to the Underground they promised to deliver for London.