Silvertown Tunnel - Public Private Partnership funding

MQT on 2016-02-22
Session date: 
February 22, 2016
Question By: 
Darren Johnson
City Hall Greens
Asked Of: 
The Mayor


The Chairman of TfL's finance and policy committee stated that the public private partnership (PPP) funding and design, build, maintain and operate contract approach will not achieve the best value for money for the Silvertown Tunnel scheme. How do you respond and what are the alternatives?


Answer for Silvertown Tunnel - Public Private Partnership funding

Answer for Silvertown Tunnel - Public Private Partnership funding

Answered By: 
The Mayor

The use of a public private partnership (PPP) to design, construct and maintain the Silvertown Tunnel offers a number of advantages for TfL.  It enables the majority of the construction, maintenance and availability risks to be transferred to the PPP company. This means the PPP company will only get paid when the tunnel has been completed to TfL's satisfaction and is open for use, thereby ensuring a very strong incentive for the company to deliver on time (or early) and to budget.

The alternative option to a PPP would be a more traditional procurement model. However, it would not be possible to accommodate funding for the Silvertown Tunnel within the current business plan other than through a PPP arrangement. Delaying the scheme beyond the current business plan would mean the existing congestion and reliability problems persist. These are forecast to worsen as London's population continues to grow, with consequential impacts on the environment, accessibility and the economy.