Metronet reaches financial close on the Tube

Metronet has reached financial close and secured operational handover on its two London Underground PPP contracts.

Metronet's partners (Balfour Beatty, Atkins, Bombadier, Seeboard and Thames Water) will run two infracos: Metronet Rail BCV, handling the Bakerloo, Central, Victoria and Waterloo & City lines; and Metronet Rail SSL, handling the Metropolitan, District, Circle, Hammersmith & City and East London lines.

Balfour expects to generate £7m of profit from the contract in the year ending 31 December 2003, while Atkins expects to make a similar amount in the year to 31 March 2004.

Balfour chief executive Mike Welton said: "After nearly four years of negotiation, consultation and planning, we are delighted to become part of the London Underground PPP and to be able to play a key role in creating a faster, safer, cleaner and more reliable London Underground system.

"We have now also added to our order book downstream engineering and construction contracts worth some £1.2 billion over the concessions' first seven and a half-year period."