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Metronet calls halt to extraordinary review

Metronet and London Underground have today called a halt to extraordinary review proceedings that could have seen the failed Tube contractor awarded up to £1.07bn.

Metronet has asked PPP Arbiter Chris Bolt to stop work on his extraordinary review whilst negotiations continue with Transport for London (TfL) over the purchase of the contractor. TfL made a formal announcement to acquire some or all of Metronet on 24 October.

Metronet has also agreed with London Underground not to restart proceedings until 18 January or until TfL withdraws its offer.

Whilst the Greater London Authority Act 1999 does not expressly provide for the withdrawal of any reference once made to the Arbiter, the Arbiter has agreed to the withdrawal on the basis that he will share key learning points from the Arbiter's analysis of the efficient and economic costs for delivering Metronet BCV's obligations with the PPP parties.

Chris Bolt said: "I was ready to publish today my final directions on the form and structure of the Extraordinary Review of Metronet BCV's PPP Agreement with London Underground and, in line with my proposed timetable, to publish on 12 November draft directions on Net Adverse Effects – the change in costs and revenues that would have been incurred by an efficient and economic infraco.

"Now that the reference has been withdrawn, it would not be appropriate to publish that draft direction. But there are useful lessons from the work my office has undertaken which I will be sharing with the parties, in particular in preparing for the periodic review."

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