UK: Transport for London announced on March 17 than it had reached an agreement to buy Tramtrack Croydon Ltd, holder of a private finance initiative concession to run the 28 km Tramlink light rail system in south London. TfL will pay £98m for the company, with completion of the deal expected this summer. Tramlink will then be managed by TfL's London Rail directorate.
Owned by Amey (50%), Royal Bank Project Investments (20%), 3i (20%) and Sir Robert McAlpine (10%), TCL won the 99-year DBOM concession in 1996. Services began in 2000, but the contractual terms proved to be source of friction, complicating changes and leading to legal disputes. TCL retained revenue from the system, and TfL had to pay compensation for changes to its fares and ticketing policy; these payments came to £4m in 2006-07, but will no longer be required.
'With 88 years remaining on the concession agreement with Tramtrack Croydon Ltd, this deal represents excellent value for money for London's fare and tax payers,' said TfL Commissioner Peter Hendy.
