Metronet crisis: government still favours PPPs despite debacle

Private companies will continue to be involved in the upgrade of the London Underground, despite the Metronet debacle, the government said yesterday.

The Department for Transport (DfT) confirmed the continued use of outside contractors while responding to a report by the Transport Select Committee, which condemned the government’s handling of Metronet.

The firm went into administration in July with £2bn in cost overruns.

Ministers criticised the government for failing to transfer risk to the private sector when it signed contracts for the PPP agreement, reported The Daily Telegraph.

But the DfT defended its handling of the agreement and accused those who lent money of failing to monitor Metronet’s performance properly, claimed the newspaper.