In 2004, the National Audit Office published two reports on London Underground - London Underground: Are the Public Private Partnerships likely to work successfully? (HC 644 2003-2004) and London Underground PPP: Were they good deals? (HC 645 2003-2004) which examined the new 30-year PPP contracts between London Underground and Metronet, and London Underground and Tube Lines.
Metronet, which was awarded two out of the three PPP contracts beginning in April 2003, went into administration in July 2007.
The objective of this report is to assess the background and aftermath of this failure. In particular, examining whether DfT could have done more to avoid the failure of Metronet and how it has managed the consequences. It examines:
■ the history of the PPP, highlighting key factors that contributed to Metronet's failure;
■ DfT's approach to risk management; and
■ the costs and other consequences of Metronet's failure.