Making sure that London Underground and the private sector are working together is the key to achieving a successful outcome. The private sector will be allowed to achieve profits in return for improved performance and improved services for passengers. Progress London Underground has been working hard to prepare for the changes the PPP will require. The arrangements will be tested and modified during this 'shadow running' period until transfer to the private sector. Two bidders were shortlisted by LT in July 2000 for each of the two deep-tube lines.
Detailed negotiations are now underway.
Separately, London Underground has explored with Railtrack the possibility of integrating the national railway network with the sub-surface lines. They have not found it possible to identify practicable schemes that would deliver integration in the way envisaged. The most significant benefits of the PPP come through transferring risk to the private sector. This means that should a project under the PPP overrun its budget, the Government and taxpayers would not be left to pick up the bill. Contrast this with a major project taken forward under direct contract to the public sector, such as the Jubilee Line Extension.