Transport for London (TfL) has concluded its agreement to buy the shares of Tube Lines from Bechtel and Amey, and announced a review of the PPP upgrade programme.
A statement from TfL said: “An urgent review of the PPP upgrade programmes will be TfL's first objective, with the aim of delivering the Tube improvements with the best possible value for money.”
London Underground (LU) said its first priority will be the completion of the Jubilee line upgrade,and to establish the best way of delivering the upgrade of the Northern and Piccadilly lines, “within available funding and with synergies achieved alongside its existing upgrade programmes for the Victoria and sub-surface lines”.
It also said the upgrade programme would proceed without further calls on fare payers' and taxpayers' money. Earlier this year, a funding gap of £460m emerged which TfL said it could not afford to plug.
Mayor of London, Boris Johnson, said: “This deal opens a new era for the Tube and one that will be free from the complexity and wrangling that hindered us in recent years.
“It also provides us with the greater flexibility on how improvement work is carried out that is so desperately needed in order to minimise disruption to Londoners and businesses.”
Andie Harper has been appointed Chief Executive Officer of Tube Lines, which is now a wholly owned subsidiary of TfL. He led the transfer of Metronet from administration to TfL.
Amey, owned by Spanish construction giant Ferrovial, will continue to provide management and maintenance services on the Jubilee, Northern and Piccadilly lines for the next 7.5 years.
Bechtel will continue to work with LU for an interim period to ensure a smooth transition of the capital works programme.
A statement from Amey said the decision would “allow TfL more flexibility so that it can manage the project in line with its changing needs”.
Mel Ewell, Chief Executive of Amey, added: “Amey is pleased to have reached financial close in relation to the sale of our equity interest in the project and we are very much looking forward to continuing to work with TfL and LU to provide the on-going maintenance and management of the Piccadilly, Jubilee and Northern lines.”
“We are proud of our record over the last seven and a half years and the results we have achieved – these include a significant reduction in delays across all three lines, increased reliability, improved safety and reduced costs.”