37 In summary and after rounding our figures, our estimated range for the loss to the taxpayer stemming from the events that led to Metronet's administration and associated other direct costs comprises the amounts set out in Figure 20 below.
20 | Total loss to the taxpayer | |||
|
| Best case (£m) | Worst Case (£m) | |
The loss associated with Metronet's inefficiencies in conducting its operational and maintenance activities | (30) | (40) | ||
The loss associated with Metronet's inefficiencies in conducting its business overhead activities | (50) | (50) | ||
The loss associated with the greater rate with which Metronet used available debt relative to the expected delivery of completed works | - | - | ||
The value of Metronet's capital works after netting off the taxpayer's payments for these works through London underground's payment of Metronet's Infrastructure Service Charges | 1,590 | 1,470 | ||
The payment made to settle Metronet's debt obligations net of calculated benefits | (1,600) | (1,600) | ||
Other losses borne by the taxpayer | (90) | (150) | ||
Total1 | (170) | (170) | ||
Source: National Audit Office analysis | ||||
NOTE 1 Rounding has resulted in the totals differing slightly from the sum of the documented values of the constituents. | ||||
38 The public sector paid approximately £4,810 million (2007 prices) for Metronet related services and investments for the 4.3-year period of Metronet's operations (approximately £3,060 million in Infrastructure Service Charges and £1,750 million settling Metronet's debt obligations). In exchange the taxpayer received day to day services and Metronet's investment in infrastructure. Additional costs from Metronet's administration and a proportion of the costs that London Underground incurred procuring the Metronet PPP contracts increase the total costs incurred to the range £5,040 million to £5,100 million. We estimate, overall, that the taxpayer incurred a loss between £170 million and £410 million (2007 prices).
39 In comparison, and before adjustment for any profits made as suppliers, the private sector's lost investment in 2007 prices was £452 million (five per cent of Metronet's debt obligations [£92 million] and £360 million equity in Metronet).