TfL pays �25m to Canary Wharf Group for Jubilee Line failures

Transport for London has forked out �25million in penalties to the Canary Wharf Group because an agreement to run a certain amount of trains per hour on the Jubilee Line has not been met.

The payouts have come because the group, which owns and runs the financial estate, pumped hundreds of millions of pounds into plans to upgrade the line in the 1990s.

But one of the conditions set was that there had to be 30 trains running every hour by 2009.

TfL confirmed that there are currently around 27 trains running each hour, meaning it has been forced to shell out a sum in the region of �25m and continues to make payments to the group.

The upgrade project has been besieged by problems and delays have shot up in recent years.

Lib-Dem London Assembly member Caroline Pidgeon, who chairs the transport committee, said: “Users of the Jubilee Line have faced years of misery as the upgrade programme over ran. To then learn that millions of pounds has been shelled out to Canary Wharf Group, whilst passengers have not been compensated, adds insult to injury.

“It is time the Mayor and TfL were honest with Londoners over the real cost of this long-standing fiasco.”

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Transport for London directly took over the running of the upgrade in 2008 from Metronet, which had agreed a public-private partnership (PPP) to lead the works.

TfL said it had to deal with the legacy left by Metronet and confirmed it is now on track to meet the target.

A spokesman said: “There was no credible plan to complete the Jubilee Line upgrade under the legacy TfL inherited from the former PPP arrangements. We have quickly turned that around, completing the upgrade in July 2011 and increasing capacity and reliability for our passengers.”

Payments are still going out to the CWG but these are due to end in March as TfL indicated at least 30 trains an hour will be running by then.

It said its upgrades mean an extra 12,500 passengers can travel on the line every hour.

A spokesman for the CWG said: “(The payouts) are to do with capacity levels that were agreed in the 1990s.”