Metronet requests extraordinary review in bid to recover cost overruns

Metronet Rail has requested an Extraordinary Review in a bid to recover massive cost overuns on its £17bn London Underground Public Private Partnership (PPP) contract to renew the Tube.

Announcing its decision today, Metronet Rail said costs had been "considerably higher" than originally anticipated by both London Underground (LUL) and Metronet. The consortium's five members are Atkins, Balfour Beatty, Bombardier, EDF Energy, and Thames Water.

Metronet has been battling with LUL for months over who should foot the bill, which industry sources say could total £2bn. The consortium claims the overspend is largely due to LUL requesting additional works.

LUL remained in combative mood today. A spokesman said: "It is Metronet's failure to plan, manage and execute the maintenance and renewal work properly which has led to the cost overuns accruing. It is not due to LUL piling more work on Metronet and then not paying for it. Any extra work we asked for we have already paid for."

The review will be carried out by the independent PPP Arbiter Chris Bolt. It will cover Metronet Rail's BCV Infraco which covers the Bakerloo, Central, Victoria and Waterloo & City lines. Later this year Metronet will request a second Extraordinary Review of costs on Metronet Rail SSL, which covers the Circle, District, Metropolitan, Hammersmith & City and East London lines. Both reviews are expected to take up to a year to complete.