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Analysis: Transport for London to take over Metronet

Transport for London has been confirmed as the only bidder for Tube upgrade firm Metronet.

Administrators Ernst & Young this week confirmed they will not be marketing Metronet to other bidders.

London Underground head Tim O’Toole said: “An exit from administration as quickly as possible is the best way to maintain the continued safe operation of the Tube network.

“I am pleased to be able to confirm today that Transport for London is the only bidder for Metronet and that we do not anticipate any other bids. We are now working with the administrator to transfer the Metronet companies to Transport for London’s control in early 2008.”

As a result an independent review by PPP arbiter Chris Bolt into money owed to Metronet by London Underground has been called off. Workers from Metronet’s two companies, BCV and SSL, will be transferred into two TfL holding companies.

BCV manages the Bakerloo, Central and Victoria lines, and SSL manages the Circle, District, Hammersmith and City, and Metropolitan lines.

PPP Administrator Alan Bloom said: “Transport for London has expressed clear interest in the purchase of Metronet Rail BCV Limited and Metronet Rail SSL Limited.

“The PPP Administrators will be working closely with Transport for London to progress their proposal towards an exit from administration, preferably early in the New Year.”

TfL will meet the Government later this year to decide on the final structure for the two
companies. Until then, they will operate as independent entities.