B1.1 | Input responsibilities are clear

The main inputs to the PPPs are funding, staffing and assets. These responsibilities are clearly set out in the contracts and associated documentation:

■ Funding - in the first 7½ years of the contracts, LUL expect to pay some £9 billion in Infrastructure Service Charge (ISC) payments to the Infracos, including performance payments, and up to £680 million for major enhancements (at 2002-03 prices). These payments are guaranteed by TfL and will be met by:

■ net operating revenue of £0.1-0.3 billion/year (farebox revenue less LUL operating costs); and

■ a grant from the Department to TfL of some £1-1.1billion per year (see Figure 11).

The ISC for later periods is agreed by the parties, with help from the Arbiter, at 7½ years - see Section C1.

■ Staffing - At deal signature, around 7,500 infrastructure staff were transferred from LUL to the private sector Infracos. Some 13,500 operational staff, including train drivers and station staff, remain part of LUL. Staffing at senior management level has changed significantly since the contracts were signed - when LUL ownership transferred to TfL in July 2003, a new management team and management structure was established; meanwhile, a number of the senior management roles at the infracos are now undertaken by secondees from the shareholding companies, the goal being to bring new perspectives and expertise to the original staff base.

■ Assets - the condition and life expectancy of the Tube's main assets (trains, stations, etc.) are the responsibility of the Infracos. However, some assets such as power supply and the LUL property estate are not managed through the PPPs, but remain under the control of LUL - see Section C2.