Amey has today announced the sale of its equity in Tube Lines (Holdings) Limited to Transport for London (TfL). Amey along with its partner in the contract, Bechtel has entered into an agreement to sell their interests in Tube Lines to Transport for London (‘TfL’) for a total of £310 million. The agreement is conditional on lenders’ consents being obtained and certain other operational matters. Completion is expected by the end of June 2010.
The decision will allow TfL more flexibility so that it can manage the project in line with its changing needs.
During the first seven and a half years of the Tube Lines contract with TfL, Amey has been responsible for the maintenance and Bechtel the capital improvements projects on the Jubilee, Northern and Piccadilly lines. On completion of the sale, Amey will continue to provide management and maintenance services during the next seven and a half year period under the existing contract with Tube Lines. Bechtel will continue to work with London Underground for an interim period to ensure a smooth transition of the capital improvements programme into TfL.
Mel Ewell, Chief Executive of Amey, commented: “Amey is looking forward to continuing to work with TfL and LU to provide the on-going maintenance and management of the Piccadilly, Jubilee and Northern lines.”
“We are proud of our record over the last seven and a half years and the results we have achieved – these include a significant reduction in delays across all three lines, increased reliability, improved safety and reduced costs. We look forward to building on these achievements and further strengthening our partnership with TfL so that together we can deliver a world-class transport service to the people of London.”