It is early days in the PPPs, but are there appropriate financial incentives in place to ensure that the Infracos deliver better Tube performance across the life of the contracts? |
Infraco deliverables are specified such that the Infraco suffers payment abatements if it does not deliver a satisfactory level of performance, and receives payment bonuses if it achieves performance higher than benchmark. Figure 9 sets out how achieved performance against the main performance indicators affects the Infrastructure Service Charge that LUL pays to the Infracos, and hence rates of return that the Infracos will make.