ARBITER REAPPOINTMENT FOR LONDON UNDERGROUND

18 May 2006 03:45 PM

Chris Bolt has been reappointed as Arbiter for the London Underground Public Private Partnerships by Transport Secretary Douglas Alexander. Chris Bolt was originally appointed as PPP Arbiter in December 2002 for a four-year term, and his appointment will now run until December 2010.
The Arbiter is an independent appointment. His main role is to decide a fair price for the maintenance and improvement services provided by Metronet and Tube Lines for London Underground under the PPP contracts, if there is a dispute between the parties. The extension of Chris Bolt's appointment will provide continuity in the Arbiter's appointment in the lead up to the PPP periodic review that will be completed by October 2010.

Notes to Editors

Biography

1. Chris Bolt is an economist by training, joining the civil service in 1975 and working as an economist in a number of departments, including HM Treasury and the Home Office. From 1988 to 1989, he was part of the Department of the Environment team responsible for privatising the water industry and establishing its initial regulatory regime. He then joined Ofwat, the independent regulator for the water industry, as Head of Economic Regulation. He moved to the Office of the Rail Regulator in a similar role in 1994 and was Rail Regulator from December 1998 to July 1999. In July 1999, he joined Transco plc, the company which owns and operates the majority of Great Britain's gas transportation system, as Regulation and Corporate Affairs Director. He was appointed to a new role of Group Director, Regulation and Public Policy in Transco's parent company, Lattice Group plc, in November 2001. He left Lattice in October 2002 on completion of its merger with National Grid Group plc.

2. In December 2002 he was appointed as PPP Arbiter for a four-year term until December 2006.

3. In July 2004 he was also appointed as Chairman of the Office of Rail Regulation for five years until July 2009.

London Underground PPP and the Arbiter

4. Under the PPP contracts two private sector consortia, Metronet and Tube Lines, maintain, renew and upgrade London Underground's infrastructure for a thirty-year period up to 2032-33. London Underground, now the responsibility of Transport for London and the Mayor, remains in the public sector, providing the train and station services to passengers.

5. The PPP Arbiter appointment is made by the Secretary of State under sections 225 to 226 of the Greater London Authority Act 1999. The Arbiter's principle role is to ensure that any differences between the PPP parties, particularly during a PPP review, about the price to be paid to the PPP companies or about economy and efficiency can be resolved independently, swiftly and with certainty. But he can also be asked to give guidance or direction on other matters in the Agreements.

6. The periodic review will enable London Underground and the PPP companies to determine the outcomes and prices paid under the PPP contract for the next 71/2 years of the agreements up to 2017-18, but will not be a fundamental review of the structure of the PPP contracts. The first review of the PPP will be completed by 2010.

Public Enquiries: 020 7944 8300
Department for Transport Website: http://www.dft.gov.uk