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2001-03-27 TfL-001
Transport for London


TfL to issue legal challenge to PPP

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London Transport
Transport for London
public-private partnerships

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Transport for London

TfL to issue legal challenge to PPP

related documents

2001-02-23 Report to Ken Livingstone, Mayor of London, on the London Underground’s proposed PPP (Transport for London)

2001-02-02 Prescott and Kiley agree to work together on the London Underground Public Private Partnership (Department of the Environment, Transport and the Regions)


27 March 2001
source Transport for London
type Press release

Transport for London (TfL) has today taken the first steps which will lead to a judicial review of the legality of imposing the proposed PPP system for managing the future of the London Underground system.

Robert Kiley, Commissioner of Transport for London, said he was taking this action with "regret" and only after months of negotiations had led him to conclude that the Government was unwilling to agree to PPP modifications which would provide unified management control.

In a meeting this afternoon the Deputy Prime Minister effectively said that the Government’s last proposals should be considered on a take it or leave it basis. Mr Kiley said that he had no choice but to leave it.

Under the Greater London Authority Act, the Mayor is required to "develop and implement policies for the promotion and encouragement of
safe, integrated, efficient and economic transport facilities and services to, from and within Greater London."

Kiley, whose teams turned around the underground systems of New York and Boston, said: "As we have continued to point out, PPP fails to support one single aspect of the Mayor’s prescribed duties. Fragmenting the management of the Tube is neither safe nor integrated.

"The PPP bids are some of the most expensive I have ever seen - there are no economies or efficiencies we can find. In fact, there are no project scopes, no work schedules, and no budgets to say what the Tube will get for up to £20 billion or more of payments to the Infracos.

"After spending £100 million, the creators of PPP have come up with something which defies common sense and repeats the mistakes that led to Hatfield. This is not value for money.

"Perhaps that is why the model exists nowhere else in the world. I repeat that, in my professional judgement, the whole PPP concept is flawed."

Under detailed proposals TfL has made, each of the Infracos would sign up to a defined programme of work with clear scope and schedules. Mr Kiley said: "This is the only way to bring the Underground system the investment and improvement it needs on a workable basis."

Railhub Archive ::: 2001-03-27 TfL-001


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