Decision on Metronet's Tube PPP costs due next week

The PPP Arbiter, Chris Bolt, will announce next week whether London Underground should reimburse Metronet Rail for what the company argues are additional works on its two London Underground PPP contracts.

Metronet is arguing that additional works it carried out on the Central Line and Victoria Line upgrades and on station upgrades should be paid for by London Underground.

If the Arbiter decides in Metronet's favour, the company will call for an Extraordinary Review of costs, which will include a decision on how much of the £750m overrun incurred on the two contracts will be funded by London Underground and how much by Metronet's shareholders - Atkins, Balfour Beatty, Bombardier, EDF Energy and Thames Water.

In his first annual review of Metronet's performance last November, Bolt said the consortium failed a key test over whether it was "economic and efficient" in its first three years and was "significantly behind schedule" in developing and maintaining stations.

However, despite this damning report, Metronet appears confident the PPP Arbiter will decide in its favour on the issue of additional costs next week.

A Metronet spokeswoman said: "We should not carry the extra cost of those works and we will look to London Underground to reimburse us once the arbiter has made his decision."