Project Company Organisation

The contractual arrangements described above (the PPP contract, the Interface Agreement and the supply and maintenance contract) are on the same terms for both the Agility Trains West Ltd and Agility Trains East Ltd Project Companies, which were both initially owned by Hitachi (70%) and John Laing (30%) as equity investors.

The equity investors made the decision to establish a single management team working across both projects due to the commonality of contractual structure, ownership, and train design, delivery and operation. This management team was primarily resourced from long-term secondees from the equity investors. This structure proved extremely valuable in providing an effective single point of contact with the Procuring Authority team, who were also managing both contracts. Consequently, the Procuring Authority was constantly aware of the developing circumstances of the projects, particularly around delayed electrification, and could facilitate the negotiation and agreement of the variations ultimately required to address those issues.

This approach also meant that the Project Company, its equity investors and their financial advisors could develop a strong team to work with the lenders to raise the finance for both projects (and the additional loan agreements required for the subsequent variations). Hitachi's relationship with Japanese banks was also important for this.