Transport for London (TfL) will receive £39bn ($76bn) of government funding until 2017/18, the Department for Transport (DfT) has announced, meaning London Underground (LU) is now ready to pay £1.7bn to Metronet's lenders to bring it out of administration.
The RMT has been urging ministers for months to end delays to the TfL”s takeover of the consortium”s contracts.
Metronet-” responsible for London Underground infrastructure and maintenance - has been in administration since last July, costing £345.5m of public money in its first six months (a government estimate) and with another £14.4m being swallowed every week” according to the RMT union.
”Our priority remains the removal of Metronet from PPP administration as quickly as possible,”said LU managing director, Tim O”Toole. ”A great deal of progress has already been made and we remain on track to transfer the two Metronet companies to two dedicated TfL companies in the early part of 2008.
”Nothing will hold up the transfer of Metronet to TfL once all the necessary steps in the administration have been taken. Once under TfL control, we will work with the Mayor and government to restructure Metronet”s contracts to deliver track, train and signalling upgrades to increase capacity, along with station and security improvements.”
The DfT funding - £33bn, with a further £6bn available to borrow - will also go towards Crossrail, transport infrastructure for the 2012 Olympics, and the expansion of rail and bus services. TfL”s current investment plan runs until 2010, and details of the programme of projects beyond that will be worked up ”over the coming months.”
”London”s transport network underpins the capital”s economy, which benefits the whole of the UK,” said Mayor of London, Ken Livingstone.
London”s Transport Commissioner, Peter Hendy, said: ”This ten-year funding settlement will enable TfL to continue with the huge investment programme that is modernising and extending the Capital”s public transport system.
”This will build on the significant improvement that have already been delivered to bus and Tube services, extension of the Docklands Light Railway and more rail capacity through our new London Overground services.”