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“The Metronet PPP contracts to upgrade the Tube left the DfT without effective means of protecting the taxpayer. Metronet’s failure led to a direct loss to the taxpayer of between £170 million and £410 million. The DfT’s work with the Mayor of London, TfL and London Underground on a long term solution will need to improve governance and risk management in the new arrangements they are intending to put in place to protect the taxpayer.”

The Department for Transport protected the taxpayer and secured value for money in the termination of National Express’s InterCity East Coast franchise.

“The Maritime and Coastguard Agency coped with the recent sharp increase in the size of the UK-flagged merchant fleet by using its staff more efficiently and by delegating more of its survey work. But with fewer surveyors, the Agency is now struggling to inspect the increased fleet, which could put at risk the quality advantage of the UK flag. Better recruitment and succession planning will be needed, along with more strategic delegation to the classification societies.”

“When the Strategic Rail Authority stepped in, the project to modernise the West Coast Main Line was in disarray, vastly over-budget and with few of the planned improvements in place. It was only through good direction by the Strategic Rail Authority and then the Department for Transport and through the exercise of firm management by Network Rail that the project was brought back on track so that benefits of faster journeys are now being delivered to passengers.

“The weaknesses in the management of the project before 2002 should provide ample warning of the dangers of entering into a scheme on this scale without clear leadership, plans and project management expertise; without fully engaging stakeholders; and using untried technologies.

“Future major projects should draw upon these lessons learned, give careful consideration up front to the potential effects of programme slippage and include plans to minimise these risks.”

“The deal has been set up well to provide safety and accountability. But the financial position of the company will need strengthening by the parties involved to enable it to make further investment in air traffic control, one of the Government’s main objectives for the Partnership.”