PPP

Meeting: 
MQT on 2007-05-23
Session date: 
May 23, 2007
Reference: 
2007/1212
Question By: 
Roger Evans
Organisation: 
GLA Conservatives
Asked Of: 
The Mayor

Question

What would the financial consequences be for London if Metronet walked away from the PPP contract?

Answer

Answer for PPP

Answer for PPP

Answered By: 
The Mayor

The PPP contracts place an obligation on Metronet to deliver what it has promised. The immediate consequence of failure to deliver under the PPP contracts is that Metronet shareholders would lose their investment and their reputations.Metronet should seek an Extraordinary Review as soon as possible to resolve their stated cost overruns - London must not bear the cost of Metronet's inefficiency.