HC Deb 07 July 1998 vol 315 cc463-4W
45. Mr. Sayeed

To ask the Secretary of State for the Environment, Transport and the Regions how much private sector investment he expects to attract to London Underground in the next five years; and if he will make a statement. [47667]

Ms Glenda Jackson

The timing and level of investment under a private finance deal is the responsibility of the private sector partner—the contract will specify the demanding performance targets to be achieved, not the investment needed to achieve them. However, London Underground estimate that, for the next five years, the level of private investment in the underground which should result from deals already signed, or close to signature, is as shown in the table.

£million
Year Investment
1998–99 115
1999–2000 57
2000–01 56
2001–02 58
2002–03 41

In addition, the innovative Public/Private Partnership we have announced should bring in a further £7 billion of private investment over 15 years.

Mr. Ottaway

To ask the Secretary of State for the Environment, Transport and the Regions if he will list the names of companies who bid for consultancy, legal and financial work on the new financial arrangements for London Underground, indicating the value of each bid. [48647]

Ms Glenda Jackson

A notice was posted in theOfficial Journal of the European Community on 6 April seeking firms to provide advice, jointly to the London Transport and the Government, on implementation of a Public/Private partnership for London Underground.

Twenty expressions of interest were received in respect of legal advice. Tenders were invited from, and submitted by, the following six firms:

  • Ashurst Morris Crisp
  • Denton Hall
  • Freshfields
  • Herbert Smith
  • Slaughter and May Wilde Sapte.

Nineteen expressions of interest were received in respect of financial advice. Tenders were invited from nine firms, and were submitted by the following:

  • Coopers and Lybrand
  • KPMG
  • Lazard Brothers
  • Price Waterhouse
  • Societe Generale.

For reasons of commercial confidentiality, it is not possible to state the value of each bid.

Freshfields and Price Waterhouse (now PricewaterhouseCoopers) were selected as, respectively, legal and financial advisers. Competitions for other advisers are currently in progress.