The Anonymous Widower

The Downside of PFI

I found this little story tucked away on the Internet. In 1998, London Underground entered into a PFI contract with a consortium called Powerlink to provide power to the system. Although, they have no issues with the consortium, London Underground have decided to exercise a break clause, that should save them £220m over the thirty year life of the contract.

Sounds like good and sensible business to me, unless you’re a member of the consortium.

Supposedly, New Buses for London cost about £330,000 each. If you divide this into £220m, you get approximately 667 buses.

Didn’t Transport for London just buy 600 New Buses for London?

It makes you think!

September 30, 2012 - Posted by AnonW | Finance, Transport/Travel | Buses, Electricity, London Underground, New Bus for London