HC Deb 07 November 2001 vol 374 cc288-90W
Matthew Taylor

To ask the Secretary of State for Transport, Local Government and the Regions if he will place in the Library the terms of reference for evaluation of the PPP bids for the London Underground. [11612]

Mr. Jamieson

London Transport is carrying out a thorough evaluation of the value for money of the bids for the London Underground PPPs, in line with the relevant guidance produced by HM Treasury and Treasury Taskforce, copies of which are already in the House Library. London Transport is also working to ensure that when it evaluates final PPP bids it addresses the issues raised by the National Audit Office in its report "The financial analysis for the London Underground Public Private Partnerships".

Matthew Taylor

To ask the Secretary of State for Transport, Local Government and the Regions if he has asked external(a) consultants and (b) organisations to evaluate the PPP bids for the London Underground once the final bids have been prepared; and if he will make a statement. [11613]

Mr. Jamieson

The Government's plans for a publicly run, privately built tube will deliver around £13 billion of investment to improve the underground's infrastructure over the next 15 years. The Secretary of State has made it clear that he will only be prepared for these plans to go ahead if he is content that they represent value for money.

London Underground is carrying out a thorough evaluation of all bids, assisted by its financial advisers PricewaterhouseCoopers and its engineering advisers Ove Amp. I understand that London Underground is also asking KPMG, its external auditor, to review the public sector comparators that London Underground has developed to guide its value for money evaluation.

In addition, Ernst & Young will be providing the Secretary of State with an independent opinion on London Underground's evaluation of the final PPP bids, focusing on the overall robustness of the value for money conclusions reached by London Underground and its advisers.

Matthew Taylor

To ask the Secretary of State for Transport, Local Government and the Regions if he will place copies of the letters of comfort issued in relation to(a) Railtrack and (b) the London Underground PPP in the Library; and if he will make a statement. [11606]

Mr. Jamieson

No such letters have been issued.

Matthew Taylor

To ask the Secretary of State for Transport, Local Government and the Regions what analyses of the impact of the discount rate on the value for money calculations on the London Underground PPP have been undertaken; and if he will place summaries in the Library. [11605]

Mr. Jamieson

I refer the hon. Member to the answer given to him on 5 November 2001,Official Report, column 9W. The value for money evaluation of the London Underground PPPs will be placed in the House Library, but not until London Transport has concluded its negotiations with bidders. To publish the value for money evaluation any earlier would reveal London Transport's negotiating position and so undermine its ability to achieve best value.

Harry Cohen

To ask the Secretary of State for Transport, Local Government and the Regions what assessment he has made of the impact on London Underground fares of financing the tube improvements planned for the next 15 years by(a) PPP and (b) direct Government borrowing. [12219]

Mr. Jamieson

Fares for the London Underground are a matter for the Mayor. The value for money evaluation that London Underground is carrying out on PPP bids assumes that fares will do no more than keep pace with inflation whether tube improvements are financed under the PPPs or by direct Government borrowing.