The Financial Analysis for the London Underground Public Private Partnerships PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Financial Analysis for the London Underground Public Private Partnerships PDF full book. Access full book title The Financial Analysis for the London Underground Public Private Partnerships by Great Britain. National Audit Office. Download full books in PDF and EPUB format.
Author: Great Britain. National Audit Office
Publisher: Stationery Office Books (TSO)
ISBN: 9780102762013
Category : Public-private sector cooperation
Languages : en
Pages : 22
Get Book Here
Book Description
The Department of Environment, Transport and the Regions (DETR) and London Transport intend to award Public Private Partnership (PPP) contracts to private sector bidders only if they pass two separate tests, the safety test and the value for money test. The value for money test assesses whether bidders offer superior value for money when compared to an alternative, publicly-funded infrastructure operation. To inform the judgement about value for money, London Underground has done extensive financial analysis and has prepared estimates of the cost of publicly funding the infrastructure under alternative financing scenarios. These cost estimates are called Public Sector Comparators. This report considers the extent to which these financial analyses resolve the value for money test. It focuses on London Underground's methodology for the financial analysis of bids and the Comparators. The Report considers that London Underground financial analysis has been thorough and provides useful but incomplete insights about the value for money of alternative approaches to managing and funding the Underground's infrastructure. The financial analysis does not, and could not, cover all the important factors needed to assess value for money. It is essential that the decision-makers understand what lies behind the figures before deciding which option to take forward. The safety test is being considered by London Transport and the Health and Safety Executive and is not part of this report.
Author: Great Britain. National Audit Office
Publisher: Stationery Office Books (TSO)
ISBN: 9780102762013
Category : Public-private sector cooperation
Languages : en
Pages : 22
Get Book Here
Book Description
The Department of Environment, Transport and the Regions (DETR) and London Transport intend to award Public Private Partnership (PPP) contracts to private sector bidders only if they pass two separate tests, the safety test and the value for money test. The value for money test assesses whether bidders offer superior value for money when compared to an alternative, publicly-funded infrastructure operation. To inform the judgement about value for money, London Underground has done extensive financial analysis and has prepared estimates of the cost of publicly funding the infrastructure under alternative financing scenarios. These cost estimates are called Public Sector Comparators. This report considers the extent to which these financial analyses resolve the value for money test. It focuses on London Underground's methodology for the financial analysis of bids and the Comparators. The Report considers that London Underground financial analysis has been thorough and provides useful but incomplete insights about the value for money of alternative approaches to managing and funding the Underground's infrastructure. The financial analysis does not, and could not, cover all the important factors needed to assess value for money. It is essential that the decision-makers understand what lies behind the figures before deciding which option to take forward. The safety test is being considered by London Transport and the Health and Safety Executive and is not part of this report.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Great Britain. Parliament. House of Commons. Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215023490
Category : Public-private sector cooperation
Languages : en
Pages : 68
Get Book Here
Book Description
In March 2003, the Government signed three 30-year public private partnership (PPP) deals worth an estimated £15.7 billion for the maintenance and renewal of London Underground trains and stations, track and signalling, after a five-year procurement process which cost £455 million. Under the PPPs, London Underground retains responsibility for operations and safety, whilst three private sector infrastructure companies (infracos) maintain and renew the infrastructure. There is a built-in periodic review mechanism, untried in any other PPP arrangement, which enables the parties to respecify requirements and make changes to prices. Ownership of London Underground was transferred to Transport for London in July 2003, which reports to the Mayor of London, although the Department for Transport still retains an interest. Following on from two NAO reports (HCP 644, session 2003-04, ISBN 0102928339 and HCP 645, session 2003-04, ISBN 0102928320) published in June 2004, the Committee's report examines the rationale for the PPPs, the contract price and other costs, and the contract management arrangements.
Author: Jean Shaoul
Publisher:
ISBN:
Category :
Languages : en
Pages : 8
Get Book Here
Book Description
This article examines whether the Government's policy of Public-Private Partnerships (PPP) in the context of London Underground is likely to satisfy the financial criteria for approving a partnership proposal: value for money (VFM), including risk transfer, and affordability. After analysing the implications of the Underground's cost structure for the PPP, the author looks at the methodology for appraising the PPP. She concludes that the methodology cannot be relied upon to provide a sound decision-making tool for London Underground. She demonstrates that the London Underground project is not affordable, and questions the appropriateness of the partnership policy in the context of vital capital-intensive industries.
Author: Graeme A. Hodge
Publisher: Edward Elgar Publishing
ISBN: 1849804699
Category : Business & Economics
Languages : en
Pages : 656
Get Book Here
Book Description
Public Private Partnerships (PPPs) promise much and present an exciting policy option. Yet as this Handbook reveals there is still much debate about the meaning of partnership, and the degree to which potential advantages are in fact being delivered. In this timely Handbook, leading scholars from around the world explore the challenges presented by infrastructure PPPs, and contemplate what lies ahead as governments balance the need to provide innovative new infrastructure against the requirement for good public governance. This Handbook builds on a range of exciting theoretical lenses that span several disciplinary boundaries. It presents innovative insights and informed perspectives from an international base of empirical evidence. This essential Handbook will prove an invaluable reference work for academics, advanced post-graduate students and commentators of PPPs, as well as professionals, infrastructure regulators and government policy advisors.
Author: International Transport Forum
Publisher: OECD Publishing
ISBN: 9282103951
Category :
Languages : en
Pages : 231
Get Book Here
Book Description
The report examines the nature of risks and uncertainty associated with different types of public-private partnership projects and the practical consequences of transferring risks to private partners.
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
ISBN: 9780215038319
Category : Business & Economics
Languages : en
Pages : 134
Get Book Here
Book Description
This report from the Transport Committee, examines London Underground and the Public-Private Partnership Agreements. The Government originally announced proposals for modernising the London Underground network system via Public-Private Partnership (PPP) agreements in 1998. Three contracts were drawn up with: (i) Tube Lines for the maintenance and renewal of the Jubilee, Piccadilly and Northern Lines; (ii) with Metronet Rail BVC for the maintenance and renewal of the Bakerloo, Central, Victoria & Waterloo & City Lines; (iii) with Metronet Rail SSL, responsible for the maintenance and renewal of the "sub-surface lines": the Circle, District, Hammersmith & City, Metropolitan & East London Lines. These PPP Agreements, 30 years in duration, were arrangements to maintain, renew and upgrade parts of London Underground by private sector infrastructure companies (Infracos), whilst London Underground is responsible for services to customers. The PPP Agreements also set out a performance-related incentive and penalty scheme to remunerate the Infracos for the improvements they make to the network. In May 2007, Metronet admitted an overspend of £1 billion and was refused access to loan facilities by the banks. It then made a reference to the PPP Arbiter, which in turn triggered an Extraordinary Review (which occurs when extra costs are incurred above the level allowed for the bid). Metronet put in a bid for £551m but the PPP Arbiter provisionally concluded that a sum of £121m was appropriate. Metronet subsequently went into administration on 18 July 2007. The report sets out a number of conclusions and recommendations, including: contracts that were supposed to deliver 35 station upgrades, in fact delivered only 14, 40% of the requirement; stations that were supposed to cost Metronet SSL £2m, cost £7.5m, with only 65% of schedule track renewal accomplished; the Committee criticises the consequences of the imposition of PPP on Transport for London, as a "lamentable state of affairs", with the future of most of London Underground's upgrade and maintenance work in doubt; the Committee states, that the Government should remember the failure of Metronet before it considers entering similar arrangements; that the Government should publish a candid analysis of the events preceding Metronet's collapse and its consequences; the Committee believe that the PPP model was flawed and probably inferior to traditional public-sector management; that the Government needs to prioritise transparency and clarity to taxpayers and ensure that any future contracts result in clear accountability.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102954968
Category : Business & Economics
Languages : en
Pages : 64
Get Book Here
Book Description
Metronet - a private infrastructure company responsible for the maintenance and upgrade of sections of the London Underground - went into administration in July 2007. Transport for London (TfL) guaranteed 95 per cent of Metronet's borrowing, with the Secretary of State for Transport assuring Metronet's lenders that the Department for Transport (DfT) would not just stand by should London Underground or TfL be unable to honour this guarantee. When Metronet failed, the DfT made a £1.7 billion payment to meet the guarantee so that the running of the Underground would not be compromised. London Underground managed the Metronet contract but DfT had a responsibility to protect the taxpayer from any financial liability. The PPP contracts gave the DfT few formal levers to protect the taxpayer, leaving the DfT to rely upon other parties, including London Underground, TfL and Metronet's shareholders and lenders. When these parties did not resolve Metronet's problems, and Metronet failed, the taxpayer was left exposed. This exposure crystallized in the early repayment of £1.7 billion to Metronet's lenders, and a loss to the taxpayer equivalent to between 4 per cent and 10 per cent of the work delivered (£170 - £410 million). DfT needs to consider how to reduce future risks to the taxpayer and, with the Mayor of London, how best to ensure effective and efficient delivery of improvements and maintenance of the Underground. The DfT sees TfL's ownership of Metronet as an interim solution and a joint decision from the Secretary of State for Transport and the Mayor of London on a long-term solution is awaited.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 9
Get Book Here
Book Description
Author: Great Britain. Parliament House of Commons. Transport, Local Government and the Regions Committee
Publisher:
ISBN: 9780215002211
Category :
Languages : en
Pages : 11
Get Book Here
Book Description
This report outlines the Committee's immediate main concerns regarding the future of London Underground and the proposed Public Private Partnership (PPP), following on from its previous report (HCP 387-I, 2001-02; ISBN: 0215001532) in which it highlighted a number of key problems with the PPP scheme and recommended an alternative strategy be sought. Subsequently, the Government has announced its intention to proceed with the PPP. The Committee questions the analysis upon which this decision has been taken, criticises the fact that no serious alternative to the PPP has been considered, and notes that it has cost £100 million to develop the PPP schemes. It recommends that MPs must be allowed a debate and vote on the future of London Underground and the decision to proceed with the PPP.
