In February 2003, the Department set out its intentions to provide LUL with a grant of £1-1.1billion per year for the first 7½ years of the contracts, a rate set to allow LUL to build up a reserve provision of approximately £170 million by 2006-07 to manage financial pressure in any year. The level of grant is to be monitored regularly and re-evaluated each two yearly Spending Review (for the subsequent three year period), at 7½ year review, and in the event of the risk provision being used up. The Department are monitoring progress through examination of LUL's 4-weekly performance reports and face-to-face meetings with Transport for London, but recognise that they have only limited levers over LUL and its running of the PPPs:
■ Annual determination of the grant to TfL
■ Restrictions on TfL's ability to contract out certain services without Secretary of State approval
■ Restrictions on disposal of operational land by the Mayor