Transport for London (TfL) will save £1.6bn from the decision to buy-out Tube Lines’ PPP contract, London mayor Boris Johnson has revealed.
Johnson revealed the figure in response to question tabled at the February Mayor’s Question Time.
“The acquisition of Tube Lines in 2010 has delivered significant savings for TfL,” said Johnson. “After taking into account the cost of the acquisition, the savings on avoided payments to shareholders, tax and debt are estimated to be £258M over the period to 2017/18 and £1.6bn over the remaining life of the PPP contract up to 2032.”
Johnson added that in addition to these financial savings there are wider benefits and savings for London resulting from the acquisition of Tube Lines.
“London Underground has benefited hugely from the ability to programme and manage work across the network in a more co-ordinated and customer-focused way, free from the restrictions of the PPP contract, especially in relation to the delivery of the line upgrades,” he said. “For example, following the acquisition of Tube Lines, TfL was able to devise a new programme to complete the Northern line upgrade which sees 60% less disrupted journeys than would have been the case had the PPP continued.”