Ernst & Young to move in at Metronet today
Administrators expected to be appointed as shareholders refuse to put up more cash
Ernst & Young is expected to be appointed today as administrator to
Metronet, the Tube contractor.
The firm will be called in after two days of intense meetings between the
company and its five shareholders, WS Atkins, Balfour Beatty, Thames Water,
France’s EDF Energy and the Canadian train maker Bombardier, according to
It is understood the companies have concluded they have no prospect of making
a return from Metronet without up to £2bn of extra funding. They have refused to
put up any more of their own cash beyond the £70m each invested at the start of
the public-private partnership to upgrade the London Underground that was
championed by Prime Minister Gordon Brown while Chancellor of the Exchequer.
The administrator’s job will be to ensure that work continues while
attempting to find a new operator to take on the work and the debt. If one is
not found the contract, and debt, will revert to Transport for London.