§ Baroness Hamweeasked Her Majesty's Government:
Further to the Answer by Lord Filkin on 16 May (HL Deb, col. 425), and in the light of the views expressed by Ernst & Young's at paragraph 1.4.3 of the executive summary of their report London's Underground PPPs Value for Money Review dated 5 February 2002, whether they regard the public private partnership contracts for the London Underground, as negotiated, as good value for money, as indicated by Lord Filkin. [HL4507]
§ Lord Macdonald of TradestonI refer the noble Baroness to the Answer given by my noble and learned friend Lord Falconer of Thoroton on 8 May (WA 184).
§ Viscount Astorasked Her Majesty's Government:
What is their estimate for the return on capital employed with regard to the public private partnership contracts agreed for London Underground. [HL4522]
81WA
§ Lord Macdonald of TradestonIt is not possible to make an estimate of the return on total capital employed at this stage. Detailed terms for the third party finance being raised for the Tube modernisation contracts will be finalised as part of the process to financial dose on the transactions. To estimate these terms at this stage would risk compromising best value. I n addition, there is no guaranteed rate of return for shareholders under the three public private partnership contracts. The payments the private sector infrastructure companies receive from London Underground will depend on the performance they actually deliver. All the money put up by the shareholders will be at risk.