Government is forced to make £2bn payment to cover Metronet’s debts
By Meera Rambissoon
The government has been forced to pay off £1.7bn of debts racked up by failed Tube PPP firm Metronet. The announcement that the government would foot the bill came after Metronet’s bankers exercised a condition of the PPP contracts which guarantees that London Underground will pay back at least 95% of outstanding debt six months after the start of any PPP administration.
In a statement to parliament setting out Transport for London’s funding for the next 10 years, transport...