黑洞社区

The future of Metronet, the London Underground infrastructure company, was thrown into doubt this week as Balfour Beatty and Atkins, its principal shareholders, issued financial warnings connected with it.

In a trading update, Atkins said it was taking a 拢36m hit, and Balfour Beatty warned that 鈥淢etronet鈥檚 finances are under increasing pressure鈥�.

The provision, which will be made in Atkins鈥� results for the year to the end of March, takes into account losses from its stake in Trans4m, which comprises the civil engineering and station upgrades work, as well as writing off profit from its 20% investment in Metronet.

Metronet鈥檚 relationship with London Underground also looked set to worsen as the two parties have failed to agree on which party is to blame and therefore who should pay for some of the cost overruns.

A spokesperson for Balfour Beatty said the likelihood of an agreement was 鈥渞eceding鈥�. It is likely that Metronet will call in the independent arbiter, Chris Bolt, to decide which party ought to pay what.

A spokesperson for Balfour Beatty said the likelihood of an agreement with London Underground was 鈥榬eceding鈥�

This signals the further deterioration of a damaged client鈥搒upplier relationship. Last week Tim O鈥橳oole, managing director of London Underground, said that the Metronet consortium had consistently failed to do its job properly and had not been managed well.

Despite Metronet鈥檚 problems both Balfour Beatty and Atkins said this week that they remained committed to the venture. However, the Balfour Beatty spokesperson said once it had invested the full 拢70m it originally agreed to, only 拢19m of which is outstanding, the company 鈥渨ould have to take a view鈥� if more money was required.

Robert MacLeod, the finance director at Atkins, told 黑洞社区 this week that Metronet was four years into a 30-year programme and that Atkins remained committed. He said: 鈥淲e are the largest in the UK. This is what we do. The work has to be done by somebody.鈥�

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