| Company | BALFOUR BEATTY PLC ORD 50P |  |
| TIDM | BBY | |
| Headline | Metronet requests extraordinary review to recover undisclosed Tube costs | |
| Released | 09:02 21-Jun-07 | |
| Number | 090250.21062007 |
| AFX UK Focus Story | ||||||||||||
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LONDON (Thomson Financial) - Metronet has requested an extraordinary review to recover additional costs incurred under its contract to renew the Tube network.
The consortium has been embroiled in negotiations with London Underground over who should fund a reported 1.2 bln stg of cost overruns in its 30-year contract to upgrade two-thirds of the London Underground network.
Metronet reportedly may try to claim 750 mln stg back because it says LU has asked for more work on top of that agreed in the original contracts.
Metronet has given London Underground notice that it is inviting the PPP Arbiter to conduct the review.
The amount of any award will be the difference between the amount that an efficient company would spend, and the amount contained in the original contract, it said.
Metronet is a consortium owned by Balfour Beatty PLC, WS Atkins, Thames Water, EDF and Bombardier Inc.
philip.waller@thomson.com
paw/ps/lce
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