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London Underground

Volume 702: debated on Thursday 26 June 2008

asked Her Majesty's Government:

What outputs were expected to be delivered in the second phase of the London Underground Public Private Partnership when contracts were signed; and whether there is funding for these to be achieved. [HL4004]

The PPP contracts were signed in December 2002 (Tube Lines JNP contract) and April 2003 (Metronet BCV and SSL contracts). The PPP contracts are for 30 years, but provide for a periodic review every seven-and-a-half years that gives London Underground and the PPP companies the opportunity to review the specification and price for the remainder of the contracts.

For Tube lines, the second period commences in July 2010. Contract deliverables due in the second period include completion of the Northern line upgrade and delivery of the Piccadilly line upgrade. Work is already well underway for the Northern line upgrade, which is programmed to be completed by the end of 2011 against a contract requirement of January 2012. Tube lines have also started the procurement process for the Piccadilly line upgrade that is due to be completed by 2014. In January 2007, contracts for the new signalling system were awarded, and the process for procuring the new rolling stock was also commenced.

Following the PPP administration of Metronet on 18 July 2007, both Metronet companies transferred to Transport for London on 27 May 2008. Transport for London, together with London Underground and the Government, are currently considering the future structure for the lines previously the responsibility of Metronet. A key consideration is to ensure that the major upgrades due to be completed on the Victoria, Metropolitan, Circle, District and Hammersmith and City lines during the second PPP period are not significantly affected by Metronet's failure.

The Comprehensive Spending Review 2007 settlement sets out the expected levels of Transport for London's grant and borrowing to 2017-18. This makes provision for the continued modernisation of the Underground and Government will continue to work with London Underground and Transport for London to ensure that these upgrades can be delivered.