Bechtel and Amey (Ferrovial) have agreed a sale of their equity in Tube Lines to Transport for London (TfL).

The deal will allow greater flexibility in the delivery of vital Tube upgrades.

Mayor of London, Boris Johnson and Transport for London has set out a revised arrangement that will enable London Underground (LU) to work with the private sector, including Amey, to deliver vital Tube improvements, as they announced that they have entered into an agreement to buy the shares of Bechtel and Amey (Ferrovial) in Tube Lines for £310m.

The agreement, when concluded, will involve no extra financial call on the Government, London's fare payers or taxpayers in relation to the upgrade of the Tube.

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Freed from the complex Public Private Partnership (PPP) structure, TfL is also confident of generating substantial savings, with greater flexibility to manage the Tube upgrade programme, alongside all the other improvements being delivered across London's transport network.

TfL will now review the PPP upgrade programmes with the objective of delivering the Tube improvements London needs, with the minimum of disruption for Londoners and businesses and delivered with the best possible value for money.

Mayor of London Boris Johnson, said: "This deal is excellent news for London.

"Freed from the perverse pressures of the Byzantine PPP structure, I am confident that London Underground and private contractors are more than capable of delivering the improvements to London's transport network we need, on time and on budget.

"There is much work ahead of us, but this arrangement provides the greater flexibility we so desperately need to minimise disruption to Londoners and businesses and ensures that this vital work will be delivered in a more cost effective manner."

(CD/GK)