Metronet review decision sparks new war of words

London Underground (LUL) has attacked a decision by independent PPP Arbiter Chris Bolt to resume the Extraordinary Review of Metronet Rail, which was halted when the beleaguered consortium went into administration in July.

A LUL spokesman said Bolt's decision was "surprising". He told CJ: "We do not see any point whatsoever in continuing this Extraordinary Review, which concerns a failed organisation that no longer exists."

Announcing his decision last week, Bolt said a resumption of the review would help Metronet's administrator "establish the fair value of Metronet BCV and SSL".

But LUL said the focus should be elsewhere. A spokesman said: "Our priorities are the continued safe and reliable operation of the Tube network and the preparation of our bid for Metronet, following which we seek to restructure the contracts to ensure they can better deliver our investment programme in future."

LUL's response is seen by observers as part of its aggressive stalking campaign to bring Metronet back in-house. A source said: "LUL officials were furious when Bolt decided to resume the review. They do not want any other bidders to contest them. This makes it very difficult for Tubelines. After all, it will be bidding against its client."

A leading consultant said: "It is a disgrace. LUL drove Metronet into administration by refusing to back its debts. Its fingerprints are all over this. An Extraordinary Review could have a huge impact on Metronet's value, making it much more attractive to private sector bidders, which is just what LUL doesn't want."

Last week Tubelines, which runs the Tube's Jubilee, Northern and Piccadilly lines, denied reports it was not interested in Metronet, contradicting LUL's claim that it is likely to be the only bidder.

A Tubelines spokeswoman told CJ: "No one else is in the position to make a bid at this stage. We need more transparency about what is being sold before we would consider making a bid."

Tubelines' chief executive Terry Morgan has already met with Metronet administrator Alan Bloom and Rothschilds, the bank appointed by Bloom to assess Metronet's value, to discuss the sale and the state of the business.