• Home
• Publications
• About us
• What's New
• Our work by sector
  • Business and industry
  • Central Finance and Treasury
  • Children and families
  • Communicating with the public
  • Communities, regions and regeneration
  • Cross-government and public administration
  • Culture, Media and Leisure
  • Defence
  • Education and skills
  • Employment, jobs and careers
  • Environment, sustainability and rural affairs
  • Health and social care
  • Housing, property and construction
  • International affairs
  • Private Finance
  • Public order, justice and rights
  • Regulation and Regulators
  • Science, technology and innovation
  • Tax and duties
  • Third Sector
  • Transport and infrastructure
  • Welfare and benefits
• Support to Parliament
• Practice Networks
• Guidance & Good Practice
• Careers and jobs
• Conferences and events
• Doing business with us

The Department for Transport: The failure of Metronet

In July 2007 two Metronet companies, set up in 2003 to modernise London Underground’s infrastructure, went into administration.

Their failure resulted in the Department for Transport (DfT) making £1.7 billion available to buy 95% of Metronet’s outstanding debt obligations from its private sector lenders in February 2008.

Metronet had two Public Private Partnership (PPP) contracts, to modernise.

• the Bakerloo, Central and Victoria lines (Metronet BCV); and
• the Metropolitan, District and Circle lines – known as sub-surface lines (Metronet SSL).

Our report focuses on DfT’s risk management and examines:

• key factors that led to the Metronet failure;
• the approach to risk management;
• the direct costs and consequences to the taxpayer of

Metronet going into administration; and

• progress towards a permanent solution.