§ Tom BrakeTo ask the Secretary of State for Transport, Local Government and the Regions what the maximum annual bonus is that he estimates will be 793W achievable under each of the three PPP contracts; and what the maximum annual penalty is that can be levied on each of the three PPP consortia. [56212]
§ Mr. Jamieson[holding answer 14 May 2002]: London Underground is responsible for the PPP contracts for the modernisation of the underground's infrastructure. Under these contracts, the performance of the private sector infrastructure companies will be measured in terms of the capacity, reliability and ambience of the travelling environment they deliver on the tube network. Payments will increase as performance improves.
There is no cap on the maximum annual penalty that can be levied under the tube modernisation contracts. Indeed, if performance deteriorates below set levels, the rate at which the contractor is penalised increases. Ultimately, poor performance could result in the contractor defaulting on the contract.