PPP Arbiter issues paper on Metronet overspend guidance

PPP Arbiter discussion paper (17 pages, PDF) on Metronet's request for guidance on the treatment of overspends in the event of an early reopening of the financial terms of its PPP contract with London Underground. The paper asks specific questions to the parties, to seek approval of his proposed approach, elicit other ideas on the process to be followed, and obtain additional evidence in some areas. The paper suggests using "external benchmarking" and reporters (consulting engineers) to "challenge" Metronet's cost submissions. The final guidance is due to be issued on Monday 29 January 2007.

For further information or advice please contact Franck Latrémolière.

Filed under PPP Arbiter, Price controls, Public transport.

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