1 | Tube PPPs: Who's who?

The Tube began operations 140 years ago, initially under private ownership. From 1948 to 2002, the Tube was run exclusively by the public sector. With the signing of PPP contracts in December 2002 and April 2003, two new private sector players became involved in managing London Underground - Tube Lines and Metronet. The diagram opposite shows the relationships and interactions between the main parties involved with the PPPs.

Who runs the PPPs?

The PPPs are run through a partnership between four organisations - LUL, which is responsible for train operations and is in charge of train drivers and station staff, and the three infrastructure companies - Infraco JNP, Infraco BCV and Infraco SSL responsible for infrastructure maintenance, replacement and upgrade on specific lines and stations, as shown in the diagram opposite.

Who pays for the PPPs?

The Department for Transport provides Transport for London (TfL) with an annual grant for the Tube of some £1 billion - £1.1 billion. TfL has responsibility for London's transport system, including the Tube. LUL also receives income from passenger fares and pays the Infracos an Infrastructure Service Charge, which varies depending on performance (see section A4).

Who oversees the PPPs?

The Department oversees the grant it pays to TfL for the Tube (see B2), and TfL passes on the grant to LUL and monitors the effectiveness of LUL and the Infracos in running the PPPs.

Safety on the Tube is LUL's responsibility. As a train operator, LUL is required to present a three year safety case to the Health and Safety Executive (HSE). Under the PPP contracts, each Infraco must present a contractual safety case to London Underground. These take a very similar form to the safety case required by the HSE.

Tube operations and infrastructure are run through a partnership between four parties - LUL and three private infrastructure companies. They are paid through a combination of grant and farebox revenue (also see text on facing page).

NOTES

1  All monetary amounts are the most recent annual figures.

2  A Partnership Director, nominated by LUL, sits on all three infraco boards.

3  Each Infraco is required, under the PPP agreement, to present a contractual safety case to LUL.

Source: National Audit Office, derived from PPP documentation.
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