Supplementary memorandum by Transport
for London (LU 03A)
I am sending you this correspondence out of
my profound concern regarding the future of the Underground. You
have previously heard my commentary on the length and complexity
of the PPP contractsits 135 documents, well over 2,800
pages, thousands of cross references and close to 2,000,000 words.
Unfortunately, its provisions leave no room for a real scope of
work with defined projects, budgets and schedules. The PPP relies
instead on a web of hundreds of complex formulae, operating between
the commercial interests of the Infracos and the public interest
Please look at the attached letter and ask yourself
if you think it is possible to rebuild the Underground with a
complete reliance on these formulae. My own view, simply put,
it is that this is a dangerous game.
Transport and PFI experts overwhelmingly agree
that the PPP is destined to fail. Like Railtrack, it will end
up having to be completely renegotiated and restructured, with
any solution far more complicated and vastly more expensive than
if it had been set right at the outset.
It is reckless to experiment with implementing
such an untested scheme, and to bind London to this experiment
for 30 years. I ask you to judge for yourself if this is the course
that London should take at this crucial time.
Robert R Kiley
Commissioner of Transport
15 November 2001