£310m Tube deals go out to tender
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Tubelines, the consortium that took over three London Underground lines as part of the Public Private Partnership two weeks ago, has already put out tenders for £310m of new equipment for the ailing transport system.
The group has asked companies to bid for two new signalling systems, one for the Northern Line and the other for the Jubilee Line at a cost of £250m, and is buying new carriages to lengthen trains on the Jubilee Line at a cost of £60m.
Tubelines is backed by two construction groups, Jarvis and Bechtel, while a third partner, Amey, had to bow out because of financial troubles. Amey has until June to raise the £60m if it wants to rejoin the team. The group is also raising another £135m of quasi-equity from a City firm, £300m in a loan from the European Investment Bank and £1.5m from commercial banks. The money should be enough to fund the first seven and a half years of a 30-year deal.
Terry Morgan, Tubelines' chief executive, says any of the partners are allowed to bid for the contracts on offer but they will have no advantage in the tender process. "All the contracts are being procured through open competition," he said.
Mr Morgan revealed that Tubelines was ready to complete on the PPP deal in June but was held up by legal challenges from London Mayor Ken Livingstone and Bob Kiley, head of Transport for London (TfL). These deals have added £31m to the bid costs, though Tubelines will not have to pay this as the money is being reimbursed by the Department for Transport.
However, Mr Morgan denied that the attempts by TfL to stop the PPP would make it difficult for Tubelines to work with the transport authority when it takes control of the Tube.
"I have met Bob Kiley and we've had quite a long conversation," said Mr Morgan. "We agreed that when the deal was done we will be able to work together, and I am optimistic we can put this all behind us."
Tubelines is taking control of three lines, the Jubilee, Northern and Piccadilly. It has promised dramatic improvements in service, the most ambitious being a 15 per cent reduction in delays on the Piccadilly line within a year.
Metronet, the consortium taking over the rest of the Tube network, is still some weeks away from completing on its part of the deal.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments