Department of Transport

Mawhinney welcomes conclusion of Northern Line trains deal
_______________________________________________________________

date 7 April 1995
source Department of Transport
type Press release

note 110

The completion of a #400m deal between London Underground and
GEC-Alsthom for the supply of new Northern Line trains was welcomed
today by Dr Brian Mawhinney, Secretary of State for Transport.

Under the terms of the deal, completed under the Government's Private
Finance Initiative, GEC-Alsthom will supply and maintain a fleet of
around 100 new trains for the Northern Line, together with associated
equipment such as platform Closed Circuit TV. The company will
finance the entire cost of the trains and their maintenance and will
take a substantial share of the risks involved in the project.

Commenting on the deal, Dr Mawhinney said:

"I am delighted that London Underground have today signed the final
contract for these trains with GEC-Alsthom.

"Transport is again leading the way in showing how the Private
Finance Initiative can deliver better investment projects and can
deliver more of them. Private finance will aid the passenger by
speeding the replacement of the existing worn out trains, while
giving the manufacturer a direct interest in ensuring that the new
trains perform reliably throughout the 20 year contract.

"This exciting project is a clear demonstration of the
Government's commitment to public transport, and is very good news
for everyone who travels on the Northern Line."

New trains will provide a much more modern and reliable service than
the existing stock, most of which dates back to the 1950s. The first
trains should enter service in mid 1996 and will boost LUL's capacity
to meet its commitments to passengers under their Customer Charter.

NOTES FOR EDITORS

1. The Northern Line carries 108 million passenger journeys per year
(15% of all Underground journeys). 82 of the current fleet of 101
trains date from the period 1956 to 1962 and are at the end of their
35 year design life. The remaining 21 trains are 1972 tube stock.

2. London Underground announced this competition on 29 March 1994 by
placing a notice in the Official Journal of the European Communities.
The notice stated that the deal would only receive approval if it met
the criteria of the Government's Private Finance Initiative which are
to transfer a substantial degree of risk to the Private Sector, and
to ensure value for money.

3. The Secretary of State announced that the deal met the
Government's Private Finance Initiative criteria on 8 December 1994.
At the same time, London Underground announced that they were
appointing GEC-Alsthom as preferred bidder.

4. London Underground have now concluded contractual negotiations on
the detailed terms of the deal with GEC-Alsthom and have today signed
the final contract. The first new trains should enter into service in
mid 1996.

# = pounds sterling

Railhub Archive ::: 1995-04-07 DoT-001