There was more bad news for troubled tube contractor Metronet today as one of company’s shareholders wrote-off its investment in the firm.
Citing “uncertainties regarding Metronet’s funding position following the Arbiter’s draft directions” Bombardier announced today its decision to write-off its investment in Metronet following the release of the Public-Private Partnership (PPP) Arbiter’s draft directions on interim infrastructure service charge (ISC) for Metronet Rail BCV Limited.
The company said its turnkey supply contracts with Metronet, currently valued at approximately £3.3 billion ($6.7 billion US), are for new trains, signalling, refurbishment of trains and fleet maintenance activities.
In a statement issued today Bombardier said “these supply contracts are progressing well and Bombardier will continue to work on them as per the requirements contained in its contracts. Bombardier remains fully committed to deliver a world class, safe and reliable Tube for London.”
Last month WS Atkins and Balfour Beatty wrote off more than 220 million pounds worth of investment in Metronet.