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Transport for London

London Underground publishes third Annual PPP Report

24 July 2006

London Underground (LU) today (July 24) published its third annual PPP report, reporting performance of LU and the PPP Infracos, Metronet and Tube Lines, for the year to March 31, 2006.

The report shows that on renewal projects which are part of TfL's £10bn Investment Programme the Infracos, particularly Tube Lines, have demonstrated the ability to deliver, on time and on budget.

However, it also reports an unacceptable failure by Metronet and Tube Lines to meet the challenges laid down to them last year:

LU Managing Director, Tim O'Toole said:"Over the last year under PPP, London Underground has made progress, but not without some problems. London Underground and Tube Lines have demonstrated the ability to deliver major renewal projects, on time and budget.

"Nonetheless, Metronet and Tube Lines continue to disappoint in many respects and failed to meet the two key challenges I laid down in last year's report. All parties involved in the renewal of the Tube must commit to delivering improvement at a faster rate than we have seen so far.

"Tube Lines have failed to maintain the Northern line to the standards we and the PPP contracts demand. Metronet and its shareholders must get a grip on its renewal projects, which have been consistently late.

"After three years we are now 10per cent of the way through these PPP contracts, but basic day-to-day maintenance of the trains, tracks and signalling systems is still not good enough and must improve. It is vital that we have a reliable Tube service, a 'Good Service' every day, as we approach the major line upgrades."

The report "London Underground and the PPP: the third year 2005/06" describes LU performance and Metronet and Tube Lines progress against the PPP contracts on maintenance and renewal activity, as well as the financial outcome over the third year of the PPP.

It shows some real achievements, undermined by some unacceptable failures:

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