PPP Contract

Meeting: 
Plenary on 2006-12-06
Session date: 
December 6, 2006
Reference: 
2006/0526
Question By: 
Geoff Pope
Organisation: 
Liberal Democrats
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

How much would it cost, and how long would it take for Transport for London to end the PPP contract with Metronet?

Answer

Answer for PPP Contract

Answer for PPP Contract

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

The PPP contracts are structured so that TfL could not unilaterally cancel them without incurring significant abortive costs running into several billion pounds and taking two years to achieve. Primary legislation might be able to facilitate that as the Mayor has suggested but clearly this would have significant costs associated with it as well. The question therefore is how Metronet's shareholders will ensure that Metronet significantly improves its performance.