The Private Finance Initiative Within London Underground Ltd



The Private Finance Initiative Within London Underground Ltd

Authors

WOODINGS N and CANNON M, London Underground Ltd, UK

Description

The Private Finance Initiative was launched in the 1992 Autumn statement by the Chancellor of the Exchequer. Its intention was to bring the private sector into the provision of services and infrastructure traditionally regarded as exclusively Public. The

Abstract

The Private Finance Initiative was launched in the 1992 Autumn statement by the Chancellor of the Exchequer. Its intention was to bring the private sector into the provision of services and infrastructure traditionally regarded as exclusively Public. The Government has indicated quite clearly to the Public Sector it must consider the private finance option before the traditional grant funding route for capital intensive projects.

PFI is viewed as an alternative source of funds for capital investment other than Grant and Fares revenue that is traditionally used. However this recent initiative has been taken very seriously by London Underground Limited with two notable successes to date; the Northern Line Trains service contract and an Information Technology contract at Canary Wharf. Additionally there are a number of further PFI projects that are well advanced such as Power, Prestige and Connect.

The aim-of the paper is to focus on the principles and key milestones of PFI projects reviewing the stren~hs and weaknesses of this initiative. In addition the paper details an overview of Private Finance projects under consideration within LUL and how this initiative is being used within London Underground to support future investment.

Publisher

Association for European Transport