532:
582:, pressed for an urgent review of the PPP, describing its performance as "bordering on disaster". TfL also said that new technology promised by Metronet had yet to be seen — "We were supposed to be getting private sector expertise and technology with the PPP (Public Private Partnership) but instead they are just using the same old kit." One week later, the chief executive of Metronet was sacked, after complaints that the company had made £50
175:
various tube and sub-surface lines; starting in 2003, it was responsible for the maintenance, renewal, and upgrade of the infrastructure (track, trains, tunnels, signals, and stations) on a total of nine
Underground lines. To encourage high reliability rates, financial deductions were incurred for poor performance at twice the rate of increase in revenue for improved performance.
26:
716:
consortium, formally ending the PPP. Commentators blamed the complex and "onerous" contracts for its failure. Combined with the takeover of
Metronet, this meant that all maintenance was thereafter managed in-house, although TfL has continued to use a large number of private suppliers and contractors.
672:
On 27 May 2008, Metronet came out of administration, and its contracts and employees were transferred to TfL under two new temporary companies, LUL Nominee BCV Ltd and LUL Nominee SSL Ltd. On 3 December 2009, the PPP business of
Metronet Rail became an integral part of London Underground. Some of the
456:
Under the terms of the PPP contracts, Metronet agreed to maintain London
Underground infrastructure (track, trains, tunnels, signals, and stations) to the standards and performance levels set in the contract. Furthermore, Metronet committed to delivering substantial improvements to the network, by
282:
promptly began work on setting up PPPs, stating that this would address the perceived period of underinvestment in the
Underground. The selected model called for the operation of services on the Tube to remain in the hands of the public sector while the infrastructure (including the track, trains,
174:
of several private companies to bid for a PPP, the
British Government having signaled its intention to transfer such activity from the public sector, although the bidding process was protracted by political disagreements. Metronet emerged as the successful bidder for two 30-year contracts covering
385:
During May 2001, it was announced that both
Metronet and Tube Lines had been selected as the preferred consortiums. Metronet emerged as the successful bidder for two 30-year contracts, covering various tube and sub-surface lines; specifically, the BCV (tube) lines contract involved the
382:(TfL) and an outspoken critic of the prospective PPPs, was put in charge of the process. Kiley was also empowered to revise the terms of the prospective contracts; he promptly produced updated briefs for the PPPs, a move which thus necessitated the submission of revised bids.
602:(ORR) over their performance from 2003 to 2006. Specific analysis included the finding that Metronet had not performed in an economic or efficient manner, and had failed to follow good industry practice. The ORR also stated that Metronet would be held responsible for £750
563:
noted that "Availability is the most important factor for Tube travellers. All the infracos needed to do to meet their availability benchmarks was to perform only a little worse than in the past. On most lines, they did not even manage that." That same month, the
287:
would be involved in the PPP was issued by the government after it was made clear that some parties would refuse to bid if it was. By the turn of the century, senior figures within the government was strongly advocating for the implementation of these PPPs.
551:
criticised the complexity of the PPP deals, noting they offered "the prospect, but not the certainty" of improvements. In August 2004, Metronet was declared at fault by an accident investigators' report into a May 2004 derailment at
457:
refurbishing, upgrading and renewing track, trains, tunnels, signals, and stations. To encourage high reliability, deductions suffered for poor performance were set at twice the rate of increase in revenue for improved performance.
189:
were criticising the opaque nature of the PPP as well as questioning the value for money in comparison to a publicly run investment programme. In August 2004, Metronet was declared at fault for a May 2004 derailment at
586:
million profit despite being behind on all its major works. By April 2005, it had started work on only 13 station refurbishments, instead of 32 as scheduled, and was more than a year behind on the refurbishment of 78
688:
rejected claims that the PPP was to blame for the collapse of
Metronet, and that it was "predominantly a corporate failure", with "structural weaknesses led to its own downfall." In 2010, the House of Commons'
283:
tunnels, signals, and stations) would be leased to private firms for a 30 year period, during which they would enact various improvements. A public denial that the newly-formed railway infrastructure company
571:, charged with ensuring value for money in public spending, published a report concluding that it was "impossible to determine" whether the PPP was better value than a publicly run investment programme.
1814:
1712:
1036:
155:
was an asset-management company responsible for the maintenance, renewal and upgrade of the infrastructure, including track, trains, signals, civils work and stations, on several
437:. Both Metronet and Tube Lines were colloquially referred to as "infracos"; there was repeated speculation that the two companies planned to merge. Contracts valued at around £17
1738:
225:
million, adding that "most of the blame for
Metronet's collapse lay with the consortium itself." The company was wound up in December 2009. After TfL opted to buy out the
1556:
633:
million overspend. In July 2007, it was reported that
Metronet was "teetering on the brink of administration". The situation arose because it had received only £121
1611:
1322:
1469:
652:
To enable its business activities to be kept going while the winding-up of the company was in progress, the British Government provided Metronet with £2
374:, there was a climate of both public and political skepticism in the involvement of the private sector in transport infrastructure. During early 2001,
717:
By the beginning of 2011, with the formal liquidation process having been completed, the Metronet brand and group of companies had ceased to exist.
825:
705:
million to £410m of taxpayer money was lost due to the failure of Metronet. The companies involved in the consortium collectively lost around £350
1599:
The government is clear that this was predominantly a corporate failure, and that the structural weaknesses of Metronet led to its own downfall.
202:(ORR) over their performance from 2003 to 2006. In July 2007, the company admitted that it may have caused a Central Line train derailment near
1044:
1809:
1234:
690:
645:, the other PPP consortium, had brought in almost all of its works on time and on budget. On 18 July 2007, the company was placed into
568:
186:
1518:
1278:
213:
during July 2007. In May 2008, the company's responsibilities were transferred back into public ownership under the authority of
1538:
1300:
698:
548:
291:
Metronet was founded in 1999 as a consortium of companies to bid for PPP contracts. The equal shareholders in the venture were
218:
1760:
575:
448:
In April 2003, Metronet began to maintain, upgrade and renew London Underground infrastructure as the PPP came into force.
268:
356:
The bidding process was protracted by political factors, including public disagreements on the topic of PPPs between then-
198:
million profit despite being behind on all its major works. During November 2006, Metronet were heavily criticised by the
1619:
1564:
656:
billion in 2008. Following negotiations with Bombardier, Metronet modified contracts to allow for continued delivery of
678:
661:
512:
1713:"Amey sells its stake in Tube Lines to Transport for London (TfL) and agrees to continue with the maintenance service"
1329:
1794:
726:
391:
591:. It was also behind on its track replacement programme, having completed 28 km of the anticipated 48 km.
500:
403:
260:
1183:
1127:
1478:
701:
warnings about the company's management. According to the report from the Public Accounts Committee, around £170
338:. The consortium awarded contracts to its own shareholders, for example rolling stock contracts were awarded to
1636:
1255:
939:
445:
million each month from the Government, although this amount was subject to reductions if targets are not met.
1471:
Rail Accident Report - Derailment of a London Underground Central Line train near Mile End station 5 July 2007
875:
1296:
674:
657:
489:
251:
1495:
1153:
959:
762:
588:
246:
conducted a deep exploration of various options for involving the private sector in the operations of the
1128:"House of Commons - Transport, Local Government and the Regions - Appendices to the Minutes of Evidence"
1079:
832:
425:
Separately, Tube Lines was awarded the contract for the other London Underground lines –
1586:
560:
504:
415:
272:
182:
164:
1643:
599:
478:
Upgrade and refurbishment of tunnels, bridges, embankments, track drainage and other civil structures
339:
304:
279:
243:
199:
194:. In April 2005, the chief executive of Metronet was sacked following complaints that it had made £50
131:
1443:
1365:
1637:"House of Commons Committee of Public Accounts - Department for Transport: The failure of Metronet"
882:
694:
685:
565:
335:
179:
1011:
1323:"Formal Investigation into the derailment of a Central line train at White City on 11th May 2004"
553:
399:
271:
that the wholesale privatisation of the Underground was not the answer and proposed the use of a
191:
1657:
229:
consortium in 2010, all Underground infrastructure maintenance was thereafter managed in-house.
178:
The PPP arrangement was closely scrutinised by the British government; by early 2005, both the
1388:
1347:
614:
613:
In July 2007, Metronet admitted that it may have caused a Central Line train derailment near
536:
441:
billion over the 30-year period were issued, under which these companies received around £660
364:
203:
1789:
1477:. Department of Transport - Rail Accident Investigation Branch. January 2008. Archived from
1406:
Webster, Ben (14 April 2005). "Metronet behind schedule on all of its main Tube projects".
734:, the other PPP consortium responsible for London Underground infrastructure from 2003 2010
646:
556:, for failing to implement sufficient safety checks despite being ordered to do so by TfL.
379:
214:
210:
1096:
664:
trains, while releasing Bombardier from its obligation to resignal the sub-surface lines.
8:
910:
371:
1686:
1421:
792:
1066:
247:
156:
1212:
1161:
508:
419:
346:
supply chain approach was later criticised for causing high costs for the consortium.
255:
1297:"London Underground PPP: Were they good deals? - National Audit Office (NAO) Report"
221:
estimated that the failure of the Metronet PPP contract cost the taxpayer up to £410
531:
411:
121:
1739:"New era for the Tube as Transport for London completes acquisition of Tube Lines"
979:
1615:
1015:
626:
434:
360:
357:
540:
472:
147 stations (including lifts and escalators) modernised or refurbished by 2012
296:
126:
113:
1803:
1165:
519:
496:
485:
481:
Refurbishment of existing rolling stock, as well as making them more reliable
430:
407:
395:
387:
292:
1761:"Tube Lines deal collapses amid cost accusations and fears for future work"
1447:
426:
367:
316:
141:
475:
127 miles (204 km) of track renewed and 166 points/crossings replaced
595:
343:
1256:"Metronet shareholders face £750m bill for London Underground failures"
731:
713:
642:
607:
312:
226:
171:
160:
136:
945:. House of Commons Public Accounts Committee. 9 March 2005. p. 9.
464:
billion, Metronet promised substantial investment during the first 7.5
1716:
1542:
1523:
579:
375:
284:
264:
250:. These options included its complete privatisation, akin to that of
1661:
1101:
983:
914:
796:
617:, in which a train hit a fire blanket left by maintenance workers.
308:
159:
lines. It was one of two infrastructure companies (the other being
610:, noted that they were delivering projects on time and on budget.
300:
965:. House of Commons Transport Committee. 9 March 2005. p. 9.
25:
1519:"Metronet on brink of collapse after plea on costs is rejected"
681:
trains), however other improvements were cancelled or delayed.
673:
improvements promised by Metronet were delivered (such as new
641:
million that was needed to cover cost over-runs. By contrast,
594:
During November 2006, Metronet were heavily criticised by the
1154:"London tube work - one firm on budget; the other £750m over"
522:
trains by 2019 (cancelled following the collapse of the PPP)
209:
Following financial difficulties, the company was placed in
1184:"Metronet behind schedule on all of its main Tube projects"
1056:
1054:
402:
lines, while the SSL (sub-surface) lines contract covered
1815:
Public–private partnership projects in the United Kingdom
712:
In May 2010, it was announced that TfL would buy out the
1687:"Tube maintenance back 'in house' as new deal is signed"
1612:"DoT failed to heed NAO warning over Metronet finances"
1051:
1061:. The London Gazette. 11 November 2009. p. 19523.
1005:
1003:
1001:
954:
952:
787:
785:
783:
1122:
1120:
1444:"Metronet admits it may have caused tube derailment"
1279:"London Underground rules out 'supercompany' merger"
820:
818:
816:
814:
606:
million in cost overruns. The other PPP consortium,
1250:
1248:
1246:
1244:
998:
949:
780:
1117:
1631:
1629:
1328:. London Underground. August 2004. Archived from
811:
629:stated that Metronet could collapse due to a £750
1801:
1681:
1679:
1387:Vulliamy, Ed; Clark, Andrew (21 February 2005).
1241:
940:"London Underground Public Private Partnerships"
1389:"Down the tube: how PPP deal is costing London"
1177:
1175:
756:
754:
752:
750:
748:
322:To pay for the works, each company provided £70
1626:
1206:
1204:
1202:
1200:
1147:
1145:
484:47 new trains with upgraded signalling on the
1676:
1386:
934:
932:
330:billion was raised using bank loans, and £600
1172:
974:
972:
905:
903:
901:
899:
745:
526:
451:
1197:
1142:
1037:"Metronet failure cost taxpayer upto £410m"
960:"The Performance of the London Underground"
1587:"PPP 'not to blame' for Metronet collapse"
1531:
1091:
1089:
929:
254:. This option was publicly opposed by the
1348:"Private firm blamed for tube derailment"
969:
896:
559:During March 2005, the House of Commons
543:to help speed up track replacement works
530:
1405:
1181:
1086:
873:
760:
495:190 new air conditioned trains for the
370:. Furthermore, in the aftermath of the
351:
1802:
1516:
1496:"Mayor admits Metronet could collapse"
1009:
468:years of the contract (2003 to 2010):
1345:
1276:
1210:
1151:
1741:. Transport for London. 27 June 2010
1462:
1012:"Metronet resolves contract dispute"
876:"London Underground PPP: background"
869:
867:
865:
863:
861:
859:
857:
855:
853:
576:Commissioner of Transport for London
1658:"'Poor management' failed Metronet"
1422:"Tube and train services disrupted"
874:Butcher, Louise (16 January 2012).
761:Baldock, Hannah (9 February 2001).
76:Templar House, High Holborn, London
13:
1366:"Metronet boss sacked over delays"
1213:"Bob Kiley: Trouble down the line"
980:"Metronet calls in administrators"
170:Metronet was founded in 1999 as a
14:
1826:
1810:London Underground infrastructure
1783:
1563:. 7 February 2008. Archived from
850:
793:"Metronet's takeover is complete"
727:History of the London Underground
620:
1557:"Govt in £2bn Metronet bail-out"
1346:Clark, Andrew (20 August 2004).
1258:. The Guardian. 17 November 2006
1097:"New blow to Tube sell-off plan"
831:. Metronet. 2005. Archived from
278:Following the election, the new
261:New Labour, New Life for Britain
24:
1753:
1731:
1705:
1650:
1604:
1579:
1549:
1510:
1488:
1436:
1414:
1399:
1380:
1358:
1339:
1315:
1289:
1270:
1227:
1029:
1010:Wright, Robert (1 April 2008).
326:million of equity; a further £2
1618:. 2 March 2010. Archived from
1539:"Partnership that turned sour"
1517:Hawkes, Steve (17 July 2007).
1211:Kiley, Bob (12 October 2001).
1182:Webster, Ben (14 April 2005).
911:"Final stamp on Tube PPP deal"
535:From 2006, Metronet used five
1:
1589:. The Guardian. 31 March 2008
1498:. The Guardian. 24 April 2007
1368:. The Guardian. 14 April 2005
1277:Clark, Phil (11 April 2003).
1130:. Parliament.uk. October 2001
738:
237:
1424:. BBC News. 20 November 2006
667:
511:lines by 2015 (delivered as
378:, the first commissioner of
167:(PPP) with the Underground.
7:
720:
275:(PPP) arrangement instead.
10:
1831:
1152:Milmo, Dan (28 May 2007).
763:"Getting the Tube to work"
561:Transport Select Committee
273:public-private partnership
242:During the mid 1990s, the
232:
183:Transport Select Committee
165:public-private partnership
1644:Public Accounts Committee
709:million in the collapse.
691:Public Accounts Committee
600:Office of Rail Regulation
569:Public Accounts Committee
527:Performance and criticism
452:Commitments under the PPP
340:Bombardier Transportation
305:Bombardier Transportation
217:(TfL). In June 2009, the
200:Office of Rail Regulation
187:Public Accounts Committee
132:Bombardier Transportation
112:
102:
95:Andrew Lezala (group CEO)
80:
72:
64:
56:
48:
40:
32:
23:
1235:"The London Underground"
883:House of Commons Library
826:"Metronet Brochure 2005"
697:for its failure to heed
695:Department for Transport
686:Department for Transport
336:European Investment Bank
1237:. BBC News. 3 May 2001.
1193:(subscription required)
684:During early 2008, the
637:million out of the £551
244:Conservative government
544:
505:Hammersmith & City
488:by 2012 (delivered as
416:Hammersmith & City
258:, who stated in their
92:David Crawley (SSL MD)
89:Andrew Cooper (BCV MD)
44:Railway infrastructure
1335:on 22 September 2004.
1301:National Audit Office
699:National Audit Office
625:In April 2007, Mayor
549:National Audit Office
534:
365:Deputy Prime Minister
219:National Audit Office
1765:Construction Manager
589:District line trains
380:Transport for London
352:Formation of the PPP
215:Transport for London
36:Private / consortium
1646:. 22 February 2010.
574:In April 2005, the
400:Waterloo & City
372:Hatfield rail crash
104:Number of employees
20:
1790:CityMayors article
1622:on 18 August 2010.
1567:on 26 October 2013
1105:. 16 December 2000
838:on 31 October 2006
547:In June 2004, the
545:
248:London Underground
157:London Underground
18:
1074:Missing or empty
539:locomotives from
334:million from the
280:Labour government
267:for the upcoming
150:
149:
19:Metronet Rail Ltd
1822:
1777:
1776:
1774:
1772:
1757:
1751:
1750:
1748:
1746:
1735:
1729:
1728:
1726:
1724:
1709:
1703:
1702:
1700:
1698:
1683:
1674:
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1669:
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1641:
1633:
1624:
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1608:
1602:
1601:
1596:
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1547:
1546:
1535:
1529:
1528:
1514:
1508:
1507:
1505:
1503:
1492:
1486:
1485:
1484:on 20 July 2011.
1483:
1476:
1466:
1460:
1459:
1457:
1455:
1440:
1434:
1433:
1431:
1429:
1418:
1412:
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1263:
1252:
1239:
1238:
1231:
1225:
1224:
1222:
1220:
1208:
1195:
1194:
1191:
1179:
1170:
1169:
1149:
1140:
1139:
1137:
1135:
1124:
1115:
1114:
1112:
1110:
1093:
1084:
1083:
1077:
1072:
1070:
1062:
1058:
1049:
1048:
1047:on 15 June 2009.
1043:. Archived from
1041:Contract Journal
1033:
1027:
1026:
1024:
1022:
1007:
996:
995:
993:
991:
976:
967:
966:
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837:
830:
822:
809:
808:
806:
804:
789:
778:
777:
775:
773:
758:
708:
704:
693:reprimanded the
655:
640:
636:
632:
605:
598:of the PPP, the
585:
566:House of Commons
467:
463:
444:
440:
333:
329:
325:
269:general election
224:
197:
180:House of Commons
28:
21:
17:
1830:
1829:
1825:
1824:
1823:
1821:
1820:
1819:
1800:
1799:
1786:
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1770:
1768:
1759:
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1742:
1737:
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1732:
1722:
1720:
1711:
1710:
1706:
1696:
1694:
1685:
1684:
1677:
1667:
1665:
1656:
1655:
1651:
1639:
1635:
1634:
1627:
1616:Accountancy Age
1610:
1609:
1605:
1592:
1590:
1585:
1584:
1580:
1570:
1568:
1561:inthenews.co.uk
1555:
1554:
1550:
1545:. 27 June 2007.
1537:
1536:
1532:
1515:
1511:
1501:
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1126:
1125:
1118:
1108:
1106:
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1094:
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1073:
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1063:
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1035:
1034:
1030:
1020:
1018:
1016:Financial Times
1008:
999:
989:
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977:
970:
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638:
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627:Ken Livingstone
623:
603:
583:
529:
465:
461:
460:At a cost of £7
454:
442:
438:
361:Ken Livingstone
358:Mayor of London
354:
331:
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240:
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222:
195:
146:
105:
98:
83:
12:
11:
5:
1828:
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1798:
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1785:
1784:External links
1782:
1779:
1778:
1752:
1730:
1704:
1675:
1664:. 2 March 2010
1649:
1625:
1603:
1578:
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1413:
1398:
1379:
1357:
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1314:
1288:
1283:building.co.uk
1269:
1240:
1226:
1215:. The Guardian
1196:
1171:
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799:. 27 May 2008
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1769:. Retrieved
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1721:. Retrieved
1719:. 7 May 2010
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1695:. Retrieved
1693:. 8 May 2010
1690:
1666:. Retrieved
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1620:the original
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1500:. Retrieved
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1448:The Guardian
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1330:the original
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1305:. Retrieved
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1158:The Guardian
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1045:the original
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368:Jon Prescott
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317:Thames Water
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256:Labour Party
252:British Rail
241:
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142:Thames Water
73:Headquarters
33:Company type
15:
1303:. June 2004
888:25 February
412:East London
344:closed shop
1804:Categories
1428:12 January
739:References
732:Tube Lines
714:Tube Lines
675:2009 Stock
658:2009 Stock
643:Tube Lines
608:Tube Lines
554:White City
490:2009 Stock
435:Piccadilly
313:EDF Energy
238:Background
227:Tube Lines
192:White City
172:consortium
137:EDF Energy
82:Key people
1717:Ferrovial
1543:The Times
1527:. London.
1524:The Times
1410:. London.
1408:The Times
1395:. London.
1354:. London.
1190:. London.
1188:The Times
1166:0261-3077
1067:cite news
668:Aftermath
580:Bob Kiley
376:Bob Kiley
285:Railtrack
265:manifesto
1691:BBC News
1662:BBC News
1102:BBC News
984:BBC News
915:BBC News
797:BBC News
767:Building
721:See also
615:Mile End
537:Class 66
497:District
431:Northern
408:District
396:Victoria
388:Bakerloo
309:SEEBOARD
204:Mile End
185:and the
41:Industry
1771:8 March
1745:8 March
1723:8 March
1668:7 March
1593:7 March
1571:6 March
1502:7 March
1454:7 March
1372:7 March
1307:7 March
1262:7 March
1219:7 March
1134:7 March
1109:7 March
1021:7 March
990:7 March
921:7 March
842:7 March
803:7 March
772:7 March
679:S Stock
662:S Stock
596:arbiter
518:24 new
513:S Stock
427:Jubilee
422:lines.
392:Central
342:. This
315:), and
311:(later
303:(later
301:Adtranz
233:History
163:) in a
57:Defunct
49:Founded
1697:10 May
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122:Atkins
114:Parent
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1773:2021
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1725:2021
1699:2010
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1573:2017
1504:2021
1456:2021
1430:2007
1374:2021
1309:2021
1264:2021
1221:2021
1162:ISSN
1136:2021
1111:2021
1080:help
1023:2020
992:2021
923:2021
890:2024
844:2021
805:2021
774:2021
677:and
660:and
507:and
433:and
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363:and
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