Metronet crisis: administration a possibility as £551m funding denied

Metronet has moved a step closer to going into administration after the PPP arbiter Chris Bolt awarded it £121m to cover extra costs, rather than the £551m it asked for.

The client, London Underground, which must pay up any extra cost was opposed to any further charge.

The consortium, backed by WS Atkins, Balfour Beatty, EDF, Thames Water and Bombardier, said it would make a statement later today or on Monday.

Metronet will now need a last-minute intervention from the Treasury if it is to avoid administration.

Bolt said today: "After careful analysis of the evidence, in the limited time available, I have concluded that this increased Infrastructure Service Charge (ISC) is at the appropriate level for an efficient and economic company performing in line with good industry practice."