The PPP contracts give LUL "step-in" rights to take over parts of an Infraco's operation in circumstances where the Infraco is in breach of contract. Under these circumstances, LUL would replace the Infraco as the counter-party to the sub-contracts put in place by the Infraco. Each Infraco therefore has to provide LUL with information about its Key Sub-Contracts, to allow LUL to check that the sub-contracts contain the rights LUL may need in the future and the appropriate terms in areas such as audit. Thereafter, LUL signs an explicit agreement (termed a "Direct Agreement") with the sub-contractor formalising the arrangement. The Direct Agreement also serves the purpose of bringing the sub-contract and the assets provided under it under the protective provisions in the Greater London Authority Act 1999 in the event of insolvency or administration of the Infracos.
The Infracos have been engaged with LUL since the contracts were signed in discussing how they might deliver their obligations in all these areas. Some information has flowed from both Tube Lines and from Metronet in each of the four areas above, but in all four areas significant difficulties have been encountered. Discussions continue with both companies as to how the provision of necessary information can be improved. In general, problems relate both to the Infracos' development of internal management information systems capable of producing required information and to the reluctance of the Infracos to provide financial information already in their possession. The position with Tube Lines is largely resolved with information flowing or dates for delivery agreed. There are substantive issues remaining with Metronet and this is disappointing, given that Metronet was helpful in resolving an impasse between LUL and Tube Lines/Metronet over the MPD.