Tube bosses blasted over spiralling costs

15th Mar 2016

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London’s sub surface Tube upgrade programme is five years behind schedule and is forecast to cost £900M more than originally expected, it has been claimed.
 
The London Assembly’s budget and performance committee has examined the circumstances behind the appointment of Bombardier Transport to upgrade signalling on the District, Circle, Metropolitan and Hammersmith & City lines.
 
The committee found that Transport for London paid out £85M to cancel the signalling contract in 2013, after only two years.
 
A report published on Friday claims that poor commercial expertise and a lack of IT procurement skills left TfL ill prepared to appoint a suitable contractor for the project. 
 
It adds that TfL management was “in denial” about the progress and effectiveness of the programme, allowing it to continue for much longer than it should have.
 
Budget and performance committee chairman John Biggs said: “This is nothing short of a disaster for London. Neither TfL nor Bombardier’s management teams were up to the task of managing the programme, but it is Londoners that will ultimately pay the price in travel delays and inefficiencies.
 
“What is most remarkable about this affair is that no one in TfL has been held to account.”
 
Transport for London said in a statement: "It was essential that decisive action was taken to end the old Bombardier contract as soon as it became clear that it would not deliver for London.
 
“We are also taking further action to make every pound go further. We have reduced our costs by 15% as part of a £16Bn savings programme and are now pressing on with removing further costs in every part of the organisation. We also have plans to generate £3.4Bn in commercial revenue from property and other assets for reinvestment in improving transport.”
 
(Photo: Transport for London)
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