Thoughts on Public Private Partnerships

Photo credit: The Guardian (UK)

In 2008, the London Underground absorbed the two Metronet infracos (private infrastructure companies) which had been responsible for running the sub-surface division of the metro system. In 2010, Mayor of London Boris Johnson condemned the Public Private Partnership contracts (PPPs) and subsequently, the government agency Transport for London (TfL) took control of Tube Lines, the infraco which is responsible for the Jubilee, Northern, and Piccadilly lines.

By all measures, the PPP scheme was a catastrophe for the already cash-strapped government, and an expensive one to boot. The private corporations which had taken ownership and responsibility for the operations and upgrade of existing Tube lines cost taxpayers more money, provided worsened service with more disruptions, had a record of safety incidents, and failed to meet project deadlines and requirements.

PPPs were promised to do the exact opposite things for London's network. What went wrong? Read on to find out.