A | PERFORMANCE OUTCOMES

B | SUCCESS FACTORS

C | CONSTRAINTS

The PPPs have the potential to deliver improvements for passengers

7 The Infracos have contracted to improve the Tube through better day-to-day performance, meeting asset condition benchmarks, asset replacement and renewal. To date, performance against benchmarks is mixed, while it will take time and good information to determine whether performance will improve to meet the full range of customer-facing contractual benchmarks. There are financial bonuses and abatements as incentives for the Infracos to deliver better performance and enable them to make significant returns on their investments, but with possible limitations in their impact.

Many are in place, but important tests ahead

8 In general, the deal is clearly specified and understood, and the parties are building a good partnership - which the government expects to be the most effective way to improve the Tube and, therefore, service to passengers.4 The management of ageing assets poses serious challenges for the Infracos and it is unclear yet whether the oversight mechanisms provided for in the contracts enable LUL to deliver the outcomes to the public that are promised in the contracts. Effective contract management by all parties is essential for the full partnership benefits to be achieved.

There are limits to what the signed deals can achieve

9 The 30-year contracts are reviewed by the parties, with the assistance of an independent Arbiter (if called upon), every 7½ years but possibly before then. Therefore it is intended that the price and scope of the deals could change. Amongst other considerations, a repricing is subject to the Department agreeing to adjust the annual grant it pays to TfL for the running of the Tube. Additionally, some Tube services are provided outside the PPPs through separate PFI contracts which bring delivery and financial risks to the PPP itself. Finally, the Mayor's transport strategy for London, and the Department for Transport's actions on rail and roads in the south east will also indirectly impact upon Tube operations.