UK tube consortium Metronet Rail has announced it will go into Public Private Partnership (PPP) administration as of today.
Metronet is responsible for the renewal and maintenance of London's Bakerloo, Central, Victoria, and Waterloo & City (BCV), Circle, District, Metropolitan, Hammersmith & City and East London lines (SSL).
Earlier this week a UK Government arbiter ruled that London tube operator London Underground must pay an extra £121m to Metronet, which had initially put forward a claim for £551m.
Metronet now says it is unable to meet its obligations without further funding.
Under the PPP contracts, partners and directors of accountants Ernst & Young LLP together with other individuals have been appointed PPP administrators.
Metronet says the administration will ensure the continuation of both BCV and SSL's maintenance and renewal activities pending the transfer of the companies' activities to a new operating company. In a statement issued today the consortium says its directors and staff are working closely with the PPP administrators and London Underground to ensure that the infrastructure it is responsible for is safely maintained.
Suppliers are expected to be paid at their usual rates and on existing terms and conditions agreed with Metronet for work carried out during the PPP administration.
By Ozge Ibrahim
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