Two separate reports have concluded that the government's public-private partnership plans for London Underground a...
Two separate reports have concluded that the government's public-private partnership plans for London Underground are over-complicated and do not deliver value for money, according to The Financial Times (p9).
The reports urge John Prescott, the environment secretary, to abandon the delay-ridden plan and consider retaining the Tube in the public sector.
In the first report, John Kramer, former chief executive of the Chicago Regional Transport Authority, says the government plan is 'fatally flawed'. He believes the new London mayor and his subordinate body, Transport for London, could borrow money on the capital markets for£1bn less than the private sector and without adding to the government's borrowing totals.
Meanwhile, a separate report by the London School of Economics says the government's proposals are 'flawed in principal and impracticable'. It urges Mr Prescott to allow the London mayor to explore new options, including the creation of an Underground trust, issuing bonds secured by dedicated revenues.