Metronet Overspend

Meeting: 
Plenary on 2006-12-06
Session date: 
December 6, 2006
Reference: 
2006/0441
Question By: 
Roger Evans
Organisation: 
GLA Conservatives
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

Andrew Lezala, Chief Executive of Metronet was quoted in The Times of 17th November as saying; "The contract allows London Underground the choice of paying more in cash or descoping the project." What choice will London Underground be taking, if the former, how much more will they pay, and if the latter, what specific projects will be descoped?

Answer

Answer for Metronet Overspend

Answer for Metronet Overspend

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

LU and Metronet have not agreed to descope the PPP. It is important that Metronet shareholders take responsibility for the poor performance and cost overruns. The Arbiter has made it clear that Metronet has not performed in an economic and efficient manner and therefore LU does not expect to pay for these costs. If any costs are to be borne by LU, then the Government will take account of such increased costs in each funding review, as made clear prior to the PPP.