Tube power PFI cancelled

16 August 2012 London Underground has announced its intention to end its electrical power PFI deal next year.
The organisation has decided to exercise its break clause within the contract, which allows it to terminate the deal in August 2013 – halfway through the 30-year deal.

“Although the contract has been performing well, the move to restructure the PFI arrangement will give us increased operational flexibility,” said London Underground commercial director Sarah Atkins.

“We’ve taken a good hard look at every aspect of how we operate the railway and found that we can make significant savings by terminating this arrangement early, avoiding expensive financing costs that would have come with continuing the contract to its end.”

The £108m contract was signed in 1998 with private organisation Powerlink, a consortium comprising UK Power Networks (80%), Balfour Beatty (10%) and ABB (10%).

This page was last updated on:
27 February 2017.

thumb

Power Play

The UK government's political strength could have come at just the right time for the PPP market

thumb

Coming into their Prime

At its start, Prime delivered new buildings for individual GPs. As the company approaches its 21st birthday, Leighton Chumbley and Richard Laing tell Paul Jarvis how the company has grown up

register

Register now to get un-restricted access to all sections of the website.

Want to see more first? Try our free preview...