1. London Underground Limited entered into three separate Public Private Partnership (PPP) Agreements, with Tube Lines in December 2002 and with Metronet (two separate agreements) in April 2003. Under these Agreements, which cover a 30 year period, three separate companies ("Infracos") are responsible for the maintenance, renewal and upgrading of specific parts of London Underground's infrastructure. London Underground, which is an operating subsidiary of Transport for London, retains responsibility for delivering services to customers.
2. Responsibility for the different lines was as follows:
Metronet Rail BCV Ltd: Bakerloo, Central, Victoria and Waterloo & City
Metronet Rail SSL Ltd: Metropolitan, Circle, Hammersmith & City and District (the Sub-Surface Lines)
Tube Lines Ltd: Jubilee, Northern and Piccadilly.
3. On18 July 2007, Metronet Rail BCV Limited and Metronet Rail SSL Limited entered PPP Administration, exiting on 27 May 2008. Ownership was transferred to two new companies within Transport for London. The two Metronet PPP Agreements remain in place pending agreement of a permanent structure for the Metronet Infracos.
4. The PPP Agreements provide for a Periodic Review of obligations and pricing every 7½ years. The Periodic Review for Tube Lines' Agreement is now under way. London Underground issued its Restated Terms and Affordability Constraints on 8 December 2008, and Tube Lines submitted its formal Response to Restated Terms on 30 June 2009. Between 1 July 2009 and 30 June 2010, the Parties will seek to negotiate agreement on revised terms, and failing that make a reference to the PPP Arbiter. Any required additional finance will also need to be in place for the start of the second Review Period on 1 July 2010.