London Underground

Procurement policy
The public-private partnership contract between Tube Lines and London Underground has finally been signed after considerable delay, so the consortium will take over Infraco JNP, giving it responsibility for the procurement of new work and the maintenance of the Jubilee, Northern and Piccadilly Lines. Metronet, the consortium that will take over the other two Underground packages – Infraco BCV and Sub-Surface Lines Infraco – has yet to sign (at January 2003).

Under London Underground, all new projects are put out to competitive tender, whereas maintenance work is generally carried out in packages under a management contracting arrangement. It is not yet known what procurement methods will be adopted by Tube Lines or Metronet.

Current and future projects
In 2001/02, London Underground's total capital expenditure was £479m, although some of this relates to capitalised work on new schemes. Of this, the company invested £32m on escalators and lifts, £90m on station projects, and £77m on track renewal and related track works.

Although the Metronet PPP deal has not been signed, London Underground is still progressing several large rail schemes. One includes extensions to the East London Line. This £600m project, which is in conjunction with Transport for London and the Strategic Rail Authority, is to be taken forward as a PFI/PPP deal. It includes a 4 km northern extension with four new stations, two southerly extensions, a 2.5 km link with one station and a second flyover to Croydon railway station. Some preparatory work on this project, the demolition of Bishopsgate goods yard, has been delayed due to a planning objection.

Future projects include a £100m northern ticket hall at Kings Cross, a £50m redevelopment of Wembley Park Station and a new station at Camden Town. London Underground is also involved in the CrossRail project.

Total investment in all Underground schemes, the three Infracos, East London Line, Docklands Light Railways and CrossRail, is forecast to rise very fast over the next few years and could peak at about £1.5 bn year. In one form or another, this work will fall, eventually, under the remit of TfL.

Essential information
Tube Lines, a consortium comprising Amey, Bechtel, Halcrow, Hyder and Jarvis, signed the Infraco JNP PPP deal in early January 2003. The Metronet consortium, which includes Balfour Beatty, Atkins, Bombardier Transportation, SEEBOARD and Thames Water, is the preferred bidder for the Sub-Surface Lines and Infraco BCV concessions. These deals are expected to be signed by April 2003, despite a legal appeal against the Tube PPP by London mayor Ken Livingstone.