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Chiltern contract to be final rail SPV project.

Contract Journal

| November 30, 2005 | COPYRIGHT 2005 Reed Business Information Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Rail PFIs, such as Laing's [pounds sterling]370m Chiltern Railways contract, will not be repeated on the network in the future, according to the Office of Rail Regulation (ORR). The industry had been hoping for a repeat of the Chiltern contract, which involves a privately-funded special purpose vehicle (SPV) delivering rail improvements over a 20-year period, to guarantee long-term work on the rail network. It was also a passionate vision of the Strategic Rail Authority before it was wound up and its responsibilities transferred to a new rail division within the Department for Transport (DfT). However, Michael Beswick, director of policy at ORR, said using an SPV for future rail enhancement contracts is now extremely unlikely. "The model is a nice idea," he said. "However, I think the use of an SPV would work only on projects for depots ...

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