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Bid for more Tube money rejected

25th January 2010

The consortium behind upgrades to part of London's Tube network has had a claim for a further £327m of public funds rejected in a row over delays. An independent adjudication into the claim by the Tube Lines consortium found London Underground (LU) was not to blame for delays and cost increases.

Transport for London (TfL) welcomed the ruling by the independent QC.

Tube Lines had sought the money for costs arising from delays to the Jubilee and Northern line upgrades.

TfL said the QC had ruled that LU had not breached its contract and bore no responsibility for any increase in the costs.

Tube Lines was contracted to complete the upgrade of the Jubilee line by the end of last month, but the project is now likely to finish at least 10 months late.

'Spurious claims'

LU is now discussing a series of part and whole line weekend closures up to October this year that will continue to cause disruption to travellers.

LU managing director Richard Parry said: "We welcome this ruling by the independent adjudicator, which makes it clear that Tube Lines is responsible, in full, for the costs it has incurred as a result of delays to the upgrade of the Jubilee and Northern lines.

"Also, that none of the allegations about LU bearing any blame for the cost increases have any foundation. "

He added: "Tube Lines need to stop making further spurious claims for additional fare payers' and taxpayers' money, given the handsome returns already being earned by shareholders Bechtel and Ferrovial, and get on with the job in hand. "

A statement from Tube Lines said: "We have received the decision from the adjudicator and will be reviewing his ruling, which is highly complex, in detail before deciding any further steps. "

Source: BBC