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Schedule 4.1 - Performance Payment Mechanism

1. Calculation of the Infrastructure Service Charge (ISC) for each Period

1.1 Purpose of Paragraph This paragraph 1 sets out the formula to calculate the amount which LUL is obliged to pay to Infraco in any Payment Period notwithstanding that the invoicing amount may be different to the extent that at the date of invoicing there are outstanding figures which are not agreed between the parties and have not been determined by the Dispute Resolution Agreement.

1.2 Calculation of the ISC

1.2.1 The Performance Adjusted ISC ( PAISC ) shall be, in respect of any Payment Period, the aggregate of (a) the Underlying ISC as adjusted by the Capability Adjustment, Availability Adjustment, Ambience Adjustment, Service Points Adjustment, and Specific Projects Adjustment;

(b) (i) where a Payment Period falls wholly within one of the semi-annual periods set out in the Tables 1.1 ( Fixed Rate Bonds ), 1.3 ( Bank Debt ) and 1.4 ( EIB ) of Annex 3 to Schedule 1.9 of the Contract, the figure applicable to that semi-annual period divided by the number of days within that semi-annual period and multiplied by the number of days in the Payment Period; and

(ii) where a Payment Period straddles two semi-annual periods set out in the Tables 1.1 ( Fixed Rate Bonds ), 1.3 ( Bank Debt ) and 1.4 ( EIB ) of Annex 3 to Schedule 1.9 of the Contract ( the two periods being referred to below as the First Period and the Second Period ), the sum of:
(A) in relation to the First Period, the figure applicable to that period divided by the number of days in that First Period then multiplied by the number of days in the Payment Period which fall within that First Period; and

(B) in relation to the Second Period, the figure applicable to that period divided by the number of days in that Second Period then multiplied by the number of days in the Payment Period which fall within that Second Period,
as such amounts may be adjusted or amended pursuant to the terms of the Transaction Documents as a consequence of a Review Process; and

(c) (i) where a Payment Period falls wholly within one of the semi-annual periods set out in the Table 1.2 of Annex 3 to Schedule 1.9 of the Contract ( Indexed Linked Bonds ), the figure applicable to that semi-annual period divided by the number of days within that semi-annual period and multiplied by the number of days in the Payment Period; and

(ii) where a Payment Period straddles two semi-annual periods set out in the Table 1.2 of Annex 3 to Schedule 1.9 of the Contract ( Indexed Linked Bonds ) ( the two periods being referred to below as the First Period and the Second Period ), the sum of:
(A) in relation to the First Period, the figure applicable to that period divided by the number of days in that First Period then multiplied by the number of days in the Payment Period which fall within that First Period; and

(B) in relation to the Second Period, the figure applicable to that period divided by the number of days in that Second Period then multiplied by the number of days in the Payment Period which fall within that Second Period.
as such amounts may be adjusted or amended pursuant to the terms of the Transaction Documents as a consequence of a Review Process.
1.2.2 The PAISC for the first Payment Period in each Contract Year following the first Contract Year shall include a Usage Annual Adjustment for the previous Contract Year which shall be indexed in accordance with Schedule 4.2 ( Indexation ).
1.2.3 Indexation shall not be applied to any monetary value or amount used in the calculation of the PAISC, provided that the result of the calculation of parts (a) and (c) of the PAISC and the Usage Annual Adjustment referred to in paragraph 1.2.2 above shall be indexed in accordance with Schedule 4.2 ( Indexation ) as at the last day of the Payment Period to which such PAISC relates.
1.2.4 After the First Review Date:
  1. if and whenever Infraco first determines that it is able to and would otherwise make a distribution to its shareholders or that any uncalled equity commitments from shareholders should be released, and/or Metronet Rail BCV Finance plc is able to and would otherwise make any payment or repayment of any Shareholder Subordinated Debt or any undrawn Shareholder Subordinated Debt would otherwise be released ( in any such case being a distribution determination ), Infraco shall include as an Exceptional Amount payable by Infraco to LUL on the ISC Invoice next following the date of the distribution determination, the lesser of (i) the aggregate of one fifteenth ( 1/15 ) of the Aggregate Indexation Credit and interest on the Aggregate Indexation Credit at the Applicable Rate from the First Review Date until the Payment Date in respect of such ISC Invoice and (ii) the amount otherwise available for distribution in cash to its shareholders in accordance with law and the Funding Agreements;


  2. the process set out in paragraph (a) above shall be repeated until the whole of the Aggregate Indexation Credit ( with interest as described below ) has been paid or credited to LUL so that on each further distribution determination ( until the Aggregate Indexation Credit ( with interest as described below ) has been paid or credited ), Infraco shall include as an Exceptional Amount payable by Infraco to LUL on the ISC Invoice next following the date of the distribution determination, the lesser of (i) the aggregate of one fifteenth ( 1/15 ) of the Aggregate Indexation Credit and interest on the balance of the Aggregate Indexation Credit outstanding following the previous payment/crediting to LUL at the Applicable Rate from the date of that previous payment/crediting to LUL until the Payment Date in respect of such ISC Invoice and (ii) the amount otherwise available for distribution in cash to its shareholders in accordance with law and the Funding Agreements; and


  3. if the Exceptional Amount payable by Infraco to LUL included on an ISC Invoice contemplated pursuant to paragraph (a) or (b) above is less than the amount that would have been payable by Infraco to LUL pursuant to sub-paragraph (a)(i) or (b)(i) above as a result of the application of sub-paragraph (a)(ii) or (b)(ii) ( shortfall ) then the next time Infraco makes a distribution determination the Exceptional Amount payable by Infraco to LUL to be included on the ISC Invoice next following the date of a distribution determination shall be the lesser of (i) the aggregate of the amount of such shortfall together with interest thereon from the relevant Payment Date when such shortfall occurred until the Payment Date in respect of such ISC Invoice, plus one fifteenth ( 1/15 ) of the Aggregate Indexation Credit and interest on the balance of the Aggregate Indexation Credit that would have been outstanding following the previous payment/crediting to LUL as if the shortfall had not occurred at the Applicable Rate from the date of that previous payment/crediting to LUL ( or the date on which such payment/crediting should have occurred ) until the Payment Date in respect of such ISC Invoice and (ii) the amount otherwise available for distribution in cash to its shareholders in accordance with law and the Funding Agreements.
1.2.5 For the purposes of paragraph 1.2.4:

Aggregate Indexation Credit means the aggregate of all Indexation Credits up to the First Review Date, plus interest at the Applicable Rate on the amount of each Indexation Credit from the Payment Date on which the ISC for the Payment Period to which the Indexation Credit relates is payable to the First Review Date;

Indexation Credit means, in respect of any Payment Period in the first Review Period where the Indexation Factor is a positive number, the sum of (a) the amount determined in accordance with paragraph 1.2.1(b) of Schedule 4.1 of the PPP Contract for such Payment Period ( but disregarding paragraph 6 on the cover page to Annex 3 to Schedule 1.9 of the PPP Contract ), multiplied by (b) the Indexation Factor for such Payment Period;

Indexation Factor means the amount calculated as follows: Indexation Factor = Mathematical formula - 1.025

Where:r current = RPIX published for the month of February immediately preceding the relevant anniversary of the Start Date.
r last = the amount which was r current in the year immediately preceding the year in which r current is being determined.

2. Calculation of the Capability Adjustment

2.1 Purpose of Paragraph

2.1.1 This paragraph 2 sets out the formula used to calculate the amount by which the Underlying ISC is to be adjusted in respect of the Actual Aggregate Capability score achieved by Infraco ( T * ) compared to the Benchmark levels of Aggregate Capability ( T BMK ) in respect of each BCV Line Grouping per Payment Period.
2.1.2 For any Line Grouping, the Actual Aggregate Capability score ( T* ) is the sum of Actual Journey Time Capability ( K* ), Actual Service Consistency ( Y* ) and Actual Service Control ( L* ) as calculated in accordance with paragraphs 1.1.1, 2.1.1 and 3.1.1 of Section Two and Schedule 1 of the Performance Measurement Code.
2.2 Calculation of the Aggregate Capability Adjustment for each Payment Period The amount of the Aggregate Capability Adjustment for each Payment Period shall be the sum of the Aggregate Capability Adjustment for the Bakerloo Line Grouping ( B ), Central Line Grouping ( C ), Victoria Line Grouping ( V ) and Waterloo & City Line Grouping ( W ) as calculated in accordance with the formulae in paragraphs 2.3 to 2.6 below:

2.3 Calculation of the Aggregate Capability Adjustment for the Bakerloo Line Grouping for each Payment Period

2.3.1 The Actual Aggregate Capability score for the Bakerloo Line Grouping for each Payment Period ( BT * ) shall be calculated in accordance with the following formula:

BT* = BK* + BY* + BL*

where: BT* is the Actual Aggregate Capability score for the Bakerloo Line Grouping;

BK* is the Actual Journey Time Capability score for the Bakerloo Line Grouping;

BY* is the Actual Service Consistency score for the Bakerloo Line Grouping; and

BL* is the Actual Service Control score for the Bakerloo Line Grouping.
2.3.2 The amount of the Actual Aggregate Capability Adjustment for the Bakerloo Line Grouping for each Payment Period shall be calculated as set out in paragraph 2.3.3 below using the key Capability performance levels set out in Appendix 2 ( Payment Parameters ).

2.3.3 If the Actual Aggregate Capability score for the Bakerloo Line Grouping ( BT* ) is:

(a) greater than or equal to the Unacceptable Aggregate Capability score ( BT UNAC ) then the Aggregate Capability Adjustment for the Bakerloo Line for each Payment Period shall be:

- bt3 .( BT* - BT UNAC ) - bt2 .( BT UNAC - BT BMK )

(b) less than the Unacceptable Aggregate Capability score but greater than or equal to the Benchmark Aggregate Capability score ( BT BMK ) then the Aggregate Capability Adjustment for the Bakerloo Line Grouping for each Payment Period shall be:

- bt2 .( BT* - BT BMK )

(c) less than the Benchmark Aggregate Capability score but greater than or equal to the Cap Aggregate Capability score ( BT CAP ) then the Aggregate Capability Adjustment for the Bakerloo Line Grouping for each Payment Period shall be:

+ bt1 .( BT BMK - BT* )

(d) less than the Cap Aggregate Capability score then the Aggregate Capability Adjustment for the Bakerloo Line Grouping for each Payment Period shall be:

+ bt1 .( BT BMK - BT CAP ) where:



bt1

is £276,154 being the marginal rate of payment adjustment between Benchmark and Cap levels;


bt2

is £552,308 being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


bt3

is £828,462 being the marginal rate of payment adjustment above Unacceptable level.

2.4 Calculation of the Aggregate Capability Adjustment for the Central Line Grouping for each Payment Period

2.4.1 The Actual Aggregate Capability score for the Central Line Grouping for each Payment Period ( CT* ) shall be calculated in accordance with the following formula:

CT* = CK* + CY* + CL*

where: CT* is the Actual Aggregate Capability score for the Central Line Grouping;

CK* is the Actual Journey Time Capability score for the Central Line Grouping;

CY* is the Actual Service Consistency score for the Central Line Grouping; and

CL* is the Actual Service Control score for the Central Line Grouping.
2.4.2 The amount of the Actual Aggregate Capability Adjustment for the Central Line Grouping, for each Payment Period, shall be calculated as set out in paragraph 2.4.3 below using the key Capability performance levels set out in Appendix 2 ( Payment Parameters ).

2.4.3 If the Actual Aggregate Capability score for the Central Line Grouping ( CT* ) is:

(a) greater than or equal to the Unacceptable Aggregate Capability score ( CT UNAC ) then the Aggregate Capability Adjustment for the Central Line Grouping for each Payment Period shall be:

- ct3 .( CT* - CT UNAC ) - ct2 .( CT UNAC - CT BMK )

(b) less than the Unacceptable Aggregate Capability score but greater than or equal to the Benchmark Aggregate Capability score ( CT BMK ) then the Aggregate Capability Adjustment for the Central Line Grouping for each Payment Period shall be:

- ct2 .( CT* - CT BMK )

(c) less than the Benchmark Aggregate Capability score but greater than or equal to the Cap Aggregate Capability score ( CT CAP ) then the Aggregate Capability Adjustment for the Central Line Grouping for each Payment Period shall be:

+ ct1 .( CT BMK - CT* )

(d) less than the Cap Aggregate Capability score then the Aggregate Capability Adjustment for the Central Line Grouping for each Payment Period shall be:

+ ct1 .( CT BMK - CT CAP ) where:



ct1

is £486,538 being the marginal rate of payment adjustment between Benchmark and Cap levels;


ct2

is £973,077 being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


ct3

is £1,459,615 being the marginal rate of payment adjustment above Unacceptable level.

2.5 Calculation of the Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period

2.5.1 The Actual Aggregate Capability score for the Victoria Line Grouping for each Payment Period ( VT* ) shall be calculated in accordance with the following formula:

VT* = VK* + VY* + VL*

where: VT* is the Actual Aggregate Capability score for the Victoria Line Grouping:

VK* is the Actual Journey Time Capability score for the Victoria Line Grouping:

VY* is the Actual Service Consistency score for the Victoria Line Grouping; and

VL* is the Actual Service Control score for the Victoria Line Grouping.
2.5.2 The amount of the Actual Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period shall be calculated as set out in paragraph 2.5.3 below using the key Capability performance levels set out in Appendix 2 ( Payment Parameters ).

2.5.3 If the Actual Aggregate Capability score for the Victoria Line Grouping ( VT* ) is:

(a) greater than or equal to the Unacceptable Aggregate Capability score ( VT UNAC ) then the Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period shall be:

- vt3 .( VT* - VT UNAC ) - vt2 .( VT UNAC - VT BMK )

(b) less than the Unacceptable Aggregate Capability score but greater than or equal to the Benchmark Aggregate Capability score ( VT BMK ) then the Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period shall be:

- vt2 .( VT* - VT BMK )

(c) less than the Benchmark Aggregate Capability score but greater than or equal to the Cap Aggregate Capability score ( VT CAP ) then the Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period shall be:

+ vt1 .( VT BMK - VT* )

(d) less than the Cap Aggregate Capability score then the Aggregate Capability Adjustment for the Victoria Line Grouping for each Payment Period shall be:

+ vt1 .( VT BMK - VT CAP ) where:



vt1

is £461,923 being the marginal rate of payment adjustment between Benchmark and Cap levels;


vt2

is £923,846 being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


vt3

is £1,385,769 being the marginal rate of payment adjustment above Unacceptable level.
2.5.4 Not withstanding paragraph 2.5.3 above and paragraph 6.3.3 below, if VK* is less than VK TAR ( as set out in Table 1, Appendix 3 of Schedule 4.1 ), then an additional Capability Adjustment will be made each Payment Period equal to:

+ vt1 ( VK TAR - VK* ) up to a maximum of £152,435.

2.6 Calculation of the Aggregate Capability Adjustment for the Waterloo and City Line Grouping for each Payment Period

2.6.1 The Actual Aggregate Capability measure for the Waterloo & City Line Grouping for each Payment Period ( WT* ) shall be calculated in accordance with the following formula:

WT* = WK* + WY* + WL*

where: WT* is the Actual Aggregate Capability measure for the Waterloo & City Line Grouping:

WK* is the Actual Journey Time Capability score for the Waterloo & City Line Grouping:

WY* is the Actual Service Consistency score for the Waterloo & City Line Grouping: and

WL* is the Actual Service Control score for the Waterloo & City Line Grouping.
2.6.2 The amount of the Actual Aggregate Capability Adjustment for the Waterloo & City Line Grouping for each Payment Period shall be calculated as set out in paragraph 2.6.3 below using the key Capability performance levels set out in Appendix 2 ( Payment Parameters ).

2.6.3 If the Actual Aggregate Capability score for the Waterloo & City Line Grouping ( WT* ) is:

(a) greater than or equal to the Unacceptable Aggregate Capability score ( WT UNAC ) then the Aggregate Capability Adjustment for the Waterloo & City Line Grouping for each Payment Period shall be:

- wt3 .( WT* - WT UNAC ) - wt2 .( WT UNAC - WT BMK )

(b) less than the Unacceptable Aggregate Capability score but greater than or equal to the Benchmark Aggregate Capability score ( WT BMK ) then the Aggregate Capability Adjustment for the Waterloo & City Line Grouping for each Payment Period shall be:

- wt2 .( WT* - WT BMK )

(c) less than the Benchmark Aggregate Capability score but greater than or equal to the Cap Aggregate Capability score ( WT CAP ) then the Aggregate Capability Adjustment for the Waterloo & City Line Grouping for each Payment Period shall be:

+ wt1 .( WT BMK - WT* )

(d) less than the Cap Aggregate Capability score then the Aggregate Capability Adjustment for the Waterloo & City Line Grouping for each Payment Period shall be:

+ wt1 .( WT BMK - WT CAP ) where:



wt1

is £56,538 being the marginal rate of payment adjustment between Benchmark and Cap levels;


wt2

is £113,077 being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


wt3

is £169,615 being the marginal rate of payment adjustment above Unacceptable level.
2.7 Service Control Use Case Analysis To the extent that the income from the future projects listed in Table 1 of Appendix 4 of this Schedule 4.1 is affected as a result of the Use Case Functionalities calculated in accordance with paragraph 2.3(a) of Part C ( Service Control Measurement Procedures ) of Schedule 2 of the Performance Measurement Code being different from those reflected in columns 1 to 3 of Table 1 of Appendix 4 of this Schedule 4.1, an adjustment shall be made to the Underlying ISC from the start of the Payment Period in which the completion of the test programme fell for each work package associated with the projects listed, to compensate for any loss or gain in revenue that would otherwise result.

3. Calculation of the Availability Adjustment

3.1 Purpose of Paragraph

3.1.1 This paragraph 3 sets out the formula to calculate the amount that the Underlying ISC is to be adjusted in respect of the Actual Availability score achieved by Infraco ( H * ) compared to the Benchmark levels of Availability ( H BMK ) in respect of each BCV Line per Payment Period.
3.1.2 The Actual Availability score for each BCV Line is calculated in accordance with paragraph 4 of Section Two of the Performance Measurement Code.
3.1A The total Availability Adjustment for the Infraco is equal to:

HI + HO

where:HI is the amount of Availability Adjustment for the Bakerloo, Central, Victoria and Waterloo & City Lines; and

HO is the amount of Availability Adjustment for another Infraco's Line.
3.2 Calculation of the Availability Adjustment for each Payment Period for Service Disruption on Infraco Lines (HI)
The amount of the Availability Adjustment for each Payment Period for Service Disruption on Infraco Lines shall be the sum of the Availability Adjustment for the Bakerloo Line ( B ), Central Line ( C ), Victoria Line ( V ) and Waterloo & City Line ( W ) as calculated in accordance with the formulae in paragraphs 3.3 to 3.6 below.

3.3 Calculation of the Availability Adjustment for the Bakerloo Line for each Payment Period

3.3.1 Subject to paragraph 3.7 below, the amount of the Actual Availability Adjustment for the Bakerloo Line for each Payment Period shall be calculated as set out in paragraph 3.3.2 below using the key Availability performance levels set out in Appendix 2 ( Payment Parameters ).

3.3.2 If the Actual Availability score for the Bakerloo Line ( BH* ) is:

(a) greater than or equal to the Unacceptable Availability score ( BH UNAC ) then the Availability Adjustment for the Bakerloo Line for each Payment Period shall be:

- h3 .( BH* - BH UNAC ) - h2 .( BH UNAC - BH BMK )

(b) less than the Unacceptable Availability score but greater than or equal to the Benchmark Availability score ( BH BMK ) then the Availability Adjustment for the Bakerloo Line shall be:

- h2 .( BH* - BH BMK )

(c) less than the Benchmark Availability score but greater than or equal to the Cap Availability score ( BH CAP ) then the Availability Adjustment for the Bakerloo Line shall be:

+ h1 .( BH BMK - BH* )

(d) less than the Cap Availability score then the Availability Adjustment for the Bakerloo Line shall be:

+ h1 .( BH BMK - BH CAP ) where:



h1

is £3.00 per hour being the marginal rate of payment adjustment between Benchmark and Cap levels;


h2

is £6.00 per hour being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


h3

is £9.00 per hour being the marginal rate of payment adjustment above Unacceptable level.

3.4 Calculation of the Availability Adjustment for the Central Line for each Payment Period

3.4.1 Subject to paragraph 3.7 below, the amount of the Actual Availability Adjustment for the Central Line for each Payment Period shall be calculated as set out in paragraphs 3.4.2 below using the key Availability performance levels set out in Appendix 2 ( Payment Parameters ).

3.4.2 If the Actual Availability score for the Central Line ( CH* ) is:

(a) greater than or equal to the Unacceptable Availability score ( CH UNAC ) then the Availability Adjustment for the Central Line for each Payment Period shall be:

- h3 .( CH* - CH UNAC ) - h2 .( CH UNAC - CH BMK )

(b) less than the Unacceptable Availability score but greater than or equal to the Benchmark Availability score ( CH BMK ) then the Availability Adjustment for the Central Line shall be:

- h2 .( CH* - CH BMK )

(c) less than the Benchmark Availability score but greater than or equal to the Cap Availability score ( CH CAP ) then the Availability Adjustment for the Central Line shall be:

+ h1 .( CH BMK - CH* )

(d) less than the Cap Availability score then the Availability Adjustment for the Central Line shall be:

+ h1 .( CH BMK - CH CAP ) where:



h1

is £3.00 per hour being the marginal rate of payment adjustment between Benchmark and Cap levels;


h2

is £6.00 per hour being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


h3

is £9.00 per hour being the marginal rate of payment adjustment above Unacceptable level.

3.5 Calculation of the Availability Adjustment for the Victoria Line for each Payment Period

3.5.1 Subject to paragraph 3.7 below, the amount of the Actual Availability Adjustment for the Victoria Line for each Payment Period shall be calculated as set out in paragraph 3.5.2 below using the key Availability performance levels set out in Appendix 2 ( Payment Parameters ).

3.5.2 If the Actual Availability score for the Victoria Line ( VH* ) is:

(a) greater than or equal to the Unacceptable Availability score ( VH UNAC ) then the Availability Adjustment for the Victoria Line for each Payment Period shall be:

- h3 .( VH* - VH UNAC ) - h2 .( VH UNAC - VH BMK )

(b) less than the Unacceptable Availability score but greater than or equal to the Benchmark Availability score ( VH BMK ) then the Availability Adjustment for the Victoria Line shall be:

- h2 .( VH* - VH BMK )

(c) less than the Benchmark Availability score but greater than or equal to the Cap Availability score ( VH CAP ) then the Availability Adjustment for the Victoria Line shall be:

+ h1 .( VH BMK - VH* )

(d) less than the Cap Availability score then the Availability Adjustment for the Victoria Line shall be:

+ h1 .( VH BMK - VH CAP ) where:



h1

is £3.00 per hour being the marginal rate of payment adjustment between Benchmark and Cap levels;


h2

is £6.00 per hour being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


h3

is £9.00 per hour being the marginal rate of payment adjustment above Unacceptable level.

3.6 Calculation of the Availability Adjustment for the Waterloo and City Line for each Payment Period

3.6.1 Subject to paragraph 3.7 below, the amount of the Actual Availability Adjustment for the Waterloo and City Line for each Payment Period shall be calculated as set out in paragraph 3.6.2 below using the key Availability performance levels set out in Appendix 2 ( Payment Parameters ).

3.6.2 If the Actual Availability score for the Waterloo and City Line ( WH* ) is:

(a) greater than or equal to the Unacceptable Availability score ( WH UNAC ) then the Availability Adjustment for the Waterloo and City Line for each Payment Period shall be:

- h3 .( WH* - WH UNAC ) - h2 .( WH UNAC - WH BMK )

(b) less than the Unacceptable Availability score but greater than or equal to the Benchmark Availability score ( WH BMK ) then the Availability Adjustment for the Waterloo and City Line shall be:

- h2 .( WH* - WH BMK )

(c) less than the Benchmark Availability score but greater than or equal to the Cap Availability score ( WH CAP ) then the Availability Adjustment for the Waterloo and City Line shall be:

+ h1 .( WH BMK - WH* )

(d) less than the Cap Availability score then the Availability Adjustment for the Waterloo and City Line shall be:

+ h1 .( WH BMK - WH CAP ) where:



h1

is £3.00 per hour being the marginal rate of payment adjustment between Benchmark and Cap levels;


h2

is £6.00 per hour being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


h3

is £9.00 per hour being the marginal rate of payment adjustment above Unacceptable level.

3.7 Availability Adjustment for a Disruption Event

3.7.1 In the event that a Disruption Event occurs, the amount of the Availability Adjustment for each Payment Period in respect of any BCV Line so affected will be calculated in accordance with paragraphs 3.7.2 to 3.7.4 below.

Low Service Disruption

3.7.2 In relation to any BCV Line on which a Disruption Event occurs, the calculation of Actual Availability under paragraph 4.2 of Section Two of the Performance Measurement Code shall cease to apply in respect of those days during which Low Service Disruption continues. In such circumstances, the amount of the Availability score used to determine Actual Availability shall be calculated by reference to the Availability score resulting from Incidents for that BCV Line Closed-out on each of the other days in that Payment Period during which the Low Service Disruption was not continuing and the remaining unaffected BCV Lines ( if any ) shall be calculated in accordance with paragraph 4 of Section Two of the Performance Measurement Code.

Medium Service Disruption

3.7.3 In relation to any BCV Line on which a Disruption Event occurs, the calculation of Actual Availability under paragraph 4.2 of Section Two of the Performance Measurement Code shall cease to apply in respect of any Payment Period during which a Medium Service Disruption occurs. In such circumstances, the amount of the Availability score used to determine Actual Availability shall be calculated by reference to the Availability score resulting from Incidents for that BCV Line Closed-up over the six (6) Payment Periods immediately prior to the Payment Period during which the Medium Service Disruption occurs and the remaining unaffected BCV Lines ( if any ) shall be calculated in accordance with paragraph 4 of Section Two of the Performance Measurement Code.

High Service Disruption

3.7.4 In relation to any BCV Line on which a Disruption Event occurs, the calculation of Actual Availability under paragraph 4.2 of Section Two of the Performance Measurement Code shall cease to apply in respect of any Payment Period during which High Service Disruption continues. In such circumstances the amount of the Availability score used to determine Actual Availability shall be calculated by reference to the average performance by Infraco resulting from Incidents for that BCV Line Closed-out over the six (6) Payment Periods immediately prior to the Payment Period during which the High Service Disruption occurs and the remaining unaffected BCV Lines ( if any ) shall be calculated in accordance with paragraph 4 of Section Two of the Performance Measurement Code and there shall be deducted from the Availability Adjustment for the relevant Payment Period, the amount equal to any cost savings enjoyed by Infraco ( taking account of Infraco's duty to mitigate ) achieved during the duration of the Disruption Event.

3.8 Calculation of the Availability Adjustment for each Payment Period for Service Disruption on another Infraco's Line (HO)

3.8.1 In the event that Incidents Closed-out in a Payment Period are attributable to Infraco, but resulted in Service Disruption on SSL or JNP, the Availability Adjustment for that Payment Period calculated in accordance with paragraphs 3.3 to 3.6 above shall be adjusted such that all Lost Customer Hours, in the relevant Payment Period and not the three period rolling average and if a Speed Restriction not the six period rolling average, deemed to result from Disruptions caused by such Incidents are applied as adjustment to the ISC at a rate of h2 as set out in paragraph 3.6.2 above.

3.9 Engineering Over-Runs

3.9.1 Where Train or Station Facilities, excluding Lifts, escalators or Customer conveyors, are not Available as a result of an Engineering Over-Run, the provisions of Schedule 8, Part C of the Performance Measurement Code will apply. For the avoidance of doubt, these provisions will be applied in addition to Availability Adjustments for Service Disruption resulting from Engineering Over-Runs.

4. Calculation of the Ambience Adjustment

4.1 Purpose of Paragraph
This paragraph 4 sets out the formula to calculate the aggregate amount that the Underlying ISC is to be adjusted per Payment Period in respect of the actual performance levels achieved by Infraco for all BCV Lines under the Mystery Shopping Scoring Criteria as set out in Schedule 6 ( Mystery Shopping Scoring Criteria ) and the audit procedures as set out in Schedule 7 ( Audit Criteria and Procedures ) and paragraph 5 of Section Two of the Performance Measurement Code ( A* ) as compared to the Benchmark Ambience performance levels ( A BMK ) which are combined into an aggregate measure by weighting the scores for each BCV Line.

4.2 Calculation of the Ambience Adjustment

4.2.1 The amount of the Ambience Adjustment shall be calculated in accordance with paragraph 4.2.2 below using the key performance levels set out in Appendix 2 ( Payment Parameters ):

4.2.2

If the actual Ambience score ( A* ) is: (a) less than or equal to Unacceptable Ambience score ( A UNAC ) then the Ambience Adjustment for each Payment Period shall be:

- a3 .( A UNAC - A* ) - a2 .( A BMK - A UNAC )

(b) greater than Unacceptable Ambience score but less than or equal to the Benchmark Ambience score ( A BMK ) then the Ambience Adjustment for each Payment Period shall be:
- a2 .( A BMK - A* ) (c) greater than the Benchmark Ambience score but less than or equal to the Cap Ambience Adjustment ( A CAP ) then the Ambience Adjustment for each Payment Period shall be:

+ a1 .( A* - A BMK )

(d) greater than the Cap Ambience Adjustment then the Ambience Adjustment for each Payment Period shall be:

+ a1 .( A CAP - A BMK )
where:



a1

is £49,760 being the marginal rate of payment adjustment between Benchmark and Cap levels;


a2

is £95,692 being the marginal rate of payment adjustment between Unacceptable and Benchmark levels; and


a3

is £143,538 being the marginal rate of payment adjustment below Unacceptable level.

5. Calculation of the Service Points Adjustment

5.1 Purpose of Paragraph This paragraph 5 sets out the formula to calculate the amount that the Underlying ISC is to be adjusted per Payment Period in respect of the levels of Service Points accumulated ( the Service Points Adjustment ) in accordance with paragraph 6 of Section Two and Schedule 8 of the Performance Measurement Code ( Service Points ).

5.2 Calculation of the Service Points Adjustment

5.2.1

The amount of the Service Points Adjustment for each Payment Period shall be calculated in accordance with the following formula: - ( S* ).s or zero, whichever is the lesser. where:



S*

is the actual number of Service Points allocated in the Payment Period; and


s

is £50 being the rate per Service Point deducted from the ISC.

6. Calculation of the Specific Projects Adjustment

6.1 Purpose of Paragraph

6.1.1 This paragraph 6 sets out the formula to calculate the amount that the Underlying ISC is to be adjusted in respect of the number of Specific Projects completed at the end of the Payment Period in accordance with the details set out in Appendix 3 ( Specific Projects ).
6.1.2 The Specific Projects Adjustment covers Specific Projects as set out in Schedule 2.1 of the PPP Contracts, where Delivery into Service of such new or enhanced Facilities as are necessary to meet such Specific Projects are not financially rewarded, or not sufficiently financially rewarded under the time based measures in paragraphs 2 and 3 or Ambience in paragraph 4 above.

6.2 Increase in Underlying ISC for Specified Line Upgrades

6.2.1 Subject to paragraph 6.2.2 below, from and after the Payment Period following the Payment Period during which a Specified Line Upgrade is Delivered into Service, the Underlying ISC shall be increased by the amount set out in column 3 of Table 1 of Appendix 3 ( Specified Line Upgrades ) Provided that if a Specified Line Upgrade is Delivered into Service prior to the Earliest Implementation Date, the Underlying ISC shall only be increased from the Payment Period following the Payment Period in which the Earliest Implementation Date falls.
6.2.2 Where Infraco Delivers into Service a proportion of the Specified Line Upgrade by the Latest Implementation Date set out in column 5 of Table 1 of Appendix 3 ( Specified Line Upgrades ), from and after the Payment Period following the Payment Period during which such proportion of the Specified Line Upgrade is Delivered into Service, the Underlying ISC shall be increased by the corresponding proportion of the amount set out in column 3 of Table 1 of Appendix 3 ( Specified Line Upgrades ). In this paragraph, "proportion" means, in respect of any Specified Line Upgrade, that percentage which is equal to the following:

= Mathematical formula

where:

a = the amount of the Journey Time Capability figure in paragraph 1.1.1 of Schedule 2.1 of the PPP Contract as updated from time to time;

b = the amount of the Journey Time Capability target score set out in column 2 of Table 1 of Appendix 3 to this Schedule; and

c = the amount of the Journey Time Capability figure determined in accordance with the testing procedures set out in Schedule 2 of the Performance Measurement Code.

6.3 Calculation of the Specific Projects Adjustment

6.3.1 Subject to paragraphs 6.3.4 and 6.3.5 below, to the extent that any Specific Project has not been Delivered into Service by the Latest Completion Date or the Latest Implementation Date as the case may be, then from the Payment Period following the Payment Period in which the Latest Completion Date or the Latest Implementation Date falls until such time as the Specific Project is Delivered into Service, the Underlying ISC for each Payment Period shall be adjusted by the amount as calculated in accordance with paragraph 6.3.2 below ( the Specific Projects Adjustment ) provided that in the event that a Delay Event occurs which affects the implementation of a Specific Project, and LUL has given Infraco written notice of the postponement of the relevant Latest Completion Date for such Specific Project to the revised Latest Completion Date set out in the relevant notice in accordance with Clause 20.5 of the Service Contract ( Revised Latest Completion Date ), and Infraco have fulfilled all obligations in accordance with Clause 20.3 of the Service Contract ( Mitigation ), no abatement shall be applied to the Underlying ISC for late delivery of that Specific Project.
6.3.2 The amount of the Specific Projects Adjustment for each Payment Period shall be the sum of: (a) the deductions for any outstanding Specified Line Upgrades as calculated in accordance with the formula set out in paragraph 6.3.3 below; and

(b) the deductions as set out in column 4 of tables 2 to 6 of Appendix 3 ( Specific Projects ) for any outstanding Specific Projects ( excluding Specified Line Upgrades ) due to be completed during the Payment Period for which payment is being calculated, not completed at that time.
6.3.2A Notwithstanding paragraphs 6.3.2 above, where the Latest Completion Date for a Train Refurbishment for any Line, as specified in Table 2 of Appendix 3, is the same as the Latest Implementation Date for a Specified Line Upgrade for the same Line, as specified in Table 1 of Appendix 3, the amount of Specific Projects Adjustment for each Payment Period shall be that amount determined in accordance with paragraph 6.3.2(a) above and shall not include deductions as determined in accordance with paragraph 6.3.2(b) above.

6.3.3

The deductions for outstanding Specified Line Upgrades shall be calculated in accordance with the following formula: (a) for the Bakerloo Line Grouping, the deduction for outstanding Specified Line Upgrades shall be:

- ( BK*-BK TAR ). bk or zero, whichever is the lesser;

(b) for the Central Line Grouping, the deduction for outstanding Specified Line Upgrades shall be:

- ( CK*-CK TAR ). ck or zero, whichever is the lesser;

(c) for the Victoria Line Grouping, the deduction for outstanding Specified Line Upgrades shall be:

- ( VK*-VK TAR ). vk or zero, whichever is the lesser; and

(d) for the Waterloo and City Line Grouping, the deduction for outstanding Specified Line Upgrades shall be:

- ( WK*-WK TAR ). wk or zero, whichever is the lesser;

where: BK* is the Actual Journey Time Capability score for the Bakerloo Line Grouping;

CK* is the Actual Journey Time Capability score for the Central Line Grouping;

VK* is the Actual Journey Time Capability score for the Victoria Line Grouping;

BK TAR is the current value for the target Journey Time Capability score for the Bakerloo Line Grouping as set out in Table 1 of Appendix 3;

CK TAR is the current value for the target Journey Time Capability score for the Central Line Grouping as set out in Table 1 of Appendix 3;

VK TAR is the current value for the target Journey Time Capability score for the Victoria Line Grouping as set out in Table 1 of Appendix 3; and

WK TAR is the current value for the target Journey Time Capability score for the Waterloo and City Line Grouping as set out in Table 1 of Appendix 3.


bk

is £276,154 per Passenger-Minute per Payment Period;


ck

is £486,538 per Passenger-Minute per Payment Period;


vk

is £461,923 per Passenger-Minute per Payment Period; and


wk

is £56,538 per Passenger-Minute per Payment Period.
6.3.4 Where, pursuant to paragraph 2.2 of Appendix 8 of Schedule 2.1 of the PPP Contract, it has been agreed that certain Train Refurbishment work shall not be carried out, or changes shall be made to the Train Refurbishment work or the timing of completion of such work, Table 2 of Appendix 3 of this Schedule shall be amended accordingly.
6.3.5 Where, pursuant to paragraph 1.6 of Appendix 15 of Schedule 2.1 of the PPP Contract, it has been agreed that certain Station Modernisation, Enhanced Station Refurbishment or Station Refurbishment work shall not be carried out, or changes shall be made to the Station Modernisation, Enhanced Station Refurbishment or Station Refurbishment work or the timing of completion of such work, Table 4 of Appendix 3 of this Schedule shall be amended accordingly.
6.4 Where any Snagging Items remain outstanding after the period referred to in paragraph 1.4 of Appendix 9 to Schedule 2.1, the Underlying ISC for each Payment Period shall be adjusted by the amount set out in the fifth column ( Snagging Item deduction per Payment Period ) of Tables 2 to 5 of Appendix 3 to this Schedule.

7. Calculation of the Usage Annual Adjustment

7.1 Purpose of Paragraph At the end of each Contract Year the number of scheduled loaded train-kilometres in respect of that Contract Year shall be identified from the Working Timetables ( U* ). This paragraph 7 sets out the adjustment to the Underlying ISC made in respect of this level of usage for that Contract Year compared with that projected in Appendix 1 ( Underlying ISC and Aggregated Usage Projections ) ( or as subsequently varied at Periodic Review ).

7.2 Calculation of the Usage Annual Adjustment

7.2.1

The amount of the Usage Annual Adjustment shall be calculated in accordance with the following formula: (a) If -0.05 < ( U* - U )/U < 0.05 then the Usage Annual Adjustment shall be zero;

(b) If -0.05 > ( U* - U )/U then the Usage Annual Adjustment shall be:

£( U* - 0.95U ).u;

(c) If 0.05 < ( U* - U )/U then the Usage Annual Adjustment shall be:

£( U* - 1.05U ).u where:



U*

is the number of loaded train-kilometres actually scheduled to be run by LUL on the Infraco Network over the Contract Year;


U

is the number of loaded train-kilometres originally projected to be scheduled to be run on the Infraco Network in the Contract Year as set out in Appendix 1 ( Underlying ISC and Aggregated Usage Projections ) ; and


u

is £0.90 being the marginal rate per loaded train-kilometre scheduled to be run added or deducted from the Underlying ISC.

APPENDIX 1 - Underlying ISC and Aggregated Usage Projections

1.1

In this Contract the following expressions shall have the following meaning:

Baseline ISC means in respect of any Payment Period the aggregate of (a) the Underlying ISC after applying indexation as at the last day of such Payment Period in accordance with Schedule 4.2 ( Indexation ) of the Contract; and
(b)

(i) where a Payment Period falls wholly within one of the semi-annual periods set out in the Tables 1.1 ( Fixed Rate Bonds ), 1.3 ( Bank Debt ) and 1.4 ( EIB ) of Annex 3 to Schedule 1.9 of the Contract, the figure applicable to that semi-annual period divided by the number of days within that semi-annual period and multiplied by the number of days in the Payment Period; and

(ii) where a Payment Period straddles two semi-annual periods set out in the Tables 1.1 ( Fixed Rate Bonds ), 1.3 ( Bank Debt ) and 1.4 ( EIB ) of Annex 3 to Schedule 1.9 of the Contract ( the two periods being referred to below as the First Period and the Second Period ), the sum of:

 (A) in relation to the First Period, the figure applicable to that period divided by the number of days in that First Period then multiplied by the number of days in the Payment Period which fall within that First Period; and

(B) in relation to the Second Period, the figure applicable to that period divided by the number of days in that Second Period then multiplied by the number of days in the Payment Period which fall within that Second Period,
as such amounts may be adjusted or amended pursuant to the terms of the Transaction Documents as a consequence of a Review Process; and
(c)

(i) where a Payment Period falls wholly within one of the semi-annual periods set out in the Table 1.2 of Annex 3 to Schedule 1.9 of the Contract ( Indexed Linked Bonds ), the figure applicable to that semi-annual period divided by the number of days within that semi-annual period and multiplied by the number of days in the Payment Period such amount to be indexed as at the last day of such Payment Period in accordance with Schedule 4.2 ( Indexation ) of the Contract; and

(ii) where a Payment Period straddles two semi-annual periods set out in the Table 1.2 of Annex 3 to Schedule 1.9 of the Contract ( Indexed Linked Bonds ) ( the two periods being referred to below as the First Period and the Second Period ), the sum of:

 (A) in relation to the First Period, the figure applicable to that period divided by the number of days in that First Period then multiplied by the number of days in the Payment Period which fall within that First Period; and

(B) in relation to the Second Period, the figure applicable to that period divided by the number of days in that Second Period then multiplied by the number of days in the Payment Period which fall within that Second Period,
 both sums having been indexed as at the last day of such Payment Period in accordance with Schedule 4.2 ( Indexation ) of the Contract as such amounts may be adjusted or amended pursuant to the terms of the Transaction Documents as a consequence of a Review Process. Performance Adjusted ISC means the amount calculated in accordance with paragraph 1.2 of Schedule 4.1 of the Contract;

Underlying ISC means, in respect of any Payment Period: (a) For all Payment Periods commencing prior to the start of the second Contract Year: £ 21.55m.

(b) For all Payment Periods commencing after the beginning of the second Contract Year but before the beginning of the third Contract Year: £ 21.02m.

(c) For all Payment Periods commencing after the beginning of the third Contract Year but before the beginning of the fourth Contract Year: £ 27.00m.

(d) For all Payment Periods commencing after the beginning of the fourth Contract Year but before the beginning of the fifth Contract Year: £ 22.10m.

(e) For all Payment Periods commencing after the beginning of the fifth Contract Year but before the beginning of the seventh Contract Year: £ 22.10m.

(f) For all Payment Periods commencing after the beginning of the seventh Contract Year but before the first Review Date: £ 25.60m.

(g) For all Payment Periods commencing on or after the first Review Date:
(i) where a Payment Period falls wholly within one of the semi-annual periods set out in the table below, the figure in the column labelled "£'m" applicable to that semi-annual period divided by the number of days within that semi-annual period and multiplied by the number of days in the Payment Period; and

(ii) where a Payment Period straddles two semi-annual periods set out in the table below ( the two periods being referred to below as the First Period and the Second Period ), the sum of:

(A) in relation to the First Period, the figure in the column labelled "£'m" applicable to that period divided by the number of days in that First Period then multiplied by the number of days in the Payment Period which fall within that First Period; and

(B) in relation to the Second Period, the figure in the column labelled "£'m" applicable to that period divided by the number of days in that Second Period then multiplied by the number of days in the Payment Period which fall within that Second Figure,




Semi annual period commencing

Semi annual period ending

£'m


1-Oct-10

31-Mar-11

110.80


1-Apr-11

30-Sep-11

96.69


1-Oct-11

31-Mar-12

97.01


1-Apr-12

30-Sep-12

93.62


1-Oct-12

31-Mar-13

68.04


1-Apr-13

30-Sep-13

110.09


1-Oct-13

31-Mar-14

74.12


1-Apr-14

30-Sep-14

105.03


1-Oct-14

31-Mar-15

99.19


1-Apr-15

30-Sep-15

112.99


1-Oct-15

31-Mar-16

104.21


1-Apr-16

30-Sep-16

111.00


1-Oct-16

31-Mar-17

109.47


1-Apr-17

30-Sep-17

111.40


1-Oct-17

31-Mar-18

105.28


1-Apr-18

30-Sep-18

95.48


1-Oct-18

31-Mar-19

106.37


1-Apr-19

30-Sep-19

76.27


1-Oct-19

31-Mar-20

71.97


1-Apr-20

30-Sep-20

72.17


1-Oct-20

31-Mar-21

79.83


1-Apr-21

30-Sep-21

80.58


1-Oct-21

31-Mar-22

67.92


1-Apr-22

30-Sep-22

63.39


1-Oct-22

31-Mar-23

72.92


1-Apr-23

30-Sep-23

72.10


1-Oct-23

31-Mar-24		 68.06


1-Apr-24

30-Sep-24

71.63


1-Oct-24

31-Mar-25

75.42


1-Apr-25

30-Sep-25

62.84


1-Oct-25

31-Mar-26

52.43


1-Apr-26

30-Sep-26

60.24


1-Oct-26

31-Mar-27

57.66


1-Apr-27

30-Sep-27

60.85


1-Oct-27

31-Mar-28

65.80


1-Apr-28

30-Sep-28

61.41


1-Oct-28

31-Mar-29

38.53


1-Apr-29

30-Sep-29

75.06


1-Oct-29

31-Mar-30

59.84


1-Apr-30

30-Sep-30

75.81


1-Oct-30

31-Mar-31

47.07


1-Apr-31

30-Sep-31

62.96


1-Oct-31

31-Mar-32

-16.02


1-Apr-32

30-Sep-32

45.13


1-Oct-32

31-Mar-33

44.25
as such amounts may be adjusted or amended pursuant to the terms of the Transaction Documents as a consequence of a Review Process.

2

The table below sets out the Aggregated Usage Projection per Contract Year:



Contract Year

Aggregated Usage Projection
 ( millions of loaded scheduled Train - kilometres )


2003/04

21.94


2004/05

22.11


2005/06

22.19


2006/07

22.31


2007/08

23.99


2008/09

23.99


2009/10

23.99


2010/11

23.99


2011/12

23.99


2012/13

24.44


2013/14

25.00


2014/15

25.11


2015/16

25.11


2016/17

25.11


Thereafter

25.11

APPENDIX 2 - Payment Parameters

1. Journey Time Capability Adjustments at Transfer Date

1.1 Where applicable, the scores for Journey Time Capability, Service Consistency, Service Control, Aggregate Capability Benchmark, Unacceptable and Cap levels and for the Central Line only the target for the Specified Line Upgrade, as set out in the tables in paragraphs 1.1.1 to 1.1.3 of Schedule 2.1, Appendix 5 of Schedule 2.1, this Appendix 2 of Schedule 4.1 and Table 1 of Appendix 3 of Schedule 4.1 will be updated to reflect the Journey Time Capability, Service Consistency, Service Control and Aggregate Capability Benchmark, Unacceptable and Cap levels at Transfer Date and for the Central Line only the target for Specified Line Upgrade as calculated in accordance with sub-paragraph c below. The Journey Time Capability, Service Consistency, Service Control and Aggregate Capability Benchmark scores will be calculated by the Journey Time Capability Model. Where applicable, the Aggregate Capability Unacceptable level shall be calculated as the Aggregate Capability Benchmark multiplied by 1.2. Where applicable, the Aggregate Capability Caps shall be changed by an amount equal to any movement in the Journey Time Target divided by 1.05. Changes to the Journey Time Capability Model Data at Transfer Date will be limited to:

a) the application of adjustments for Speed Restrictions at Transfer Date in accordance with paragraph 1.4 of Part A of Schedule 2 of the Performance Measurement Code;
b) where a Speed Restriction is in place on the Transfer Date and the elapsed time between the imposition and Transfer Date is less than three (3) complete Payment Periods, such Speed Restriction shall be lifted and immediately re-opened as a new Speed Restriction on the Transfer Date;
c) on the Central Line only, the completion of Journey Time Capability test programmes measuring changes in Infraco Measures attributable to changed Rolling Stock performance and changed Automatic Train Operation profile delivered prior to Transfer Date but excluding the impacts on Rolling stock performance and changed Automatic Train Operation profile attributable to the Chancery Lane Incident.

For the avoidance of doubt this means taking the Capability Inter-station Run-time ( IRI( ixy ) ) performance as measured in the Capability train tests completed on the 30th May 2002, updated for any changes in Inter-station Run-times ( IRI( ixy ) ) occurring between 30th May 2002 and 24th January 2003, and updating the RORIT(xd) Infraco Measures to reflect performance as at 24th January 2003. For the avoidance of doubt notwithstanding Clause 1.4 Part A, Schedule 2 of the PMC and Clause 1.1(a) of, Appendix 2, BCV Schedule 4, Speed Restrictions arising from the Chancery Lane Incident shall not be attributable to Infraco and hence shall not transfer to Capability.

d) on the Central Line only, the inclusion of a time allowance for a future audible warning chime to be sounded before door closure affecting Infraco Measures IRI( ixy ) and RORIT(xd) within two (2) years of Transfer Date, in compliance with the Category 1 Standard for this requirement or as amended by any concession granted in accordance with the Standards Code.
1.2 No other changes to Infraco Measures, as measured in accordance with the Performance Measurement Code, shall be made unless such changes have been agreed by the Infraco and LUL.
1.3 The changes due to paragraph (c) above shall be provisional until the changed Rolling Stock performance ( i.e. enhanced braking rate ) has been proved under normal adhesion conditions experienced in the first twelve (12) month period following Transfer Date. Should the adhesion available at the rail head prove insufficient to support the enhanced braking rate under normal adhesion conditions during the first year following Transfer Date and provided that Infraco has made reasonable endeavours in accordance with Good Industry Practice to maintain the enhanced braking rate, the Benchmark Journey Time Capability score will be reset to the Journey Time Capability score obtained by setting the Journey Time Capability Model applicable at Transfer Date to reflect the performance of the Train at an open section service brake rate of 0.55ms -2 and a tunnel brake rate of 1.05ms -2.
1.4 Should the adhesion available at the rail head prove insufficient to support the enhanced braking rate under poor adhesion conditions, and provided that Infraco has made reasonable endeavours in accordance with Good Industry Practice to maintain the enhanced braking rate under poor conditions employing reasonable poor adhesion mitigation measures, then Infraco shall be relieved of any abatements that may occur due to the imposition of Speed Restrictions that would otherwise not have been necessary had the brake rate performance not been enhanced.
1.5 In the case of the Central Line only, the target for the Specified Line Upgrade will be reset at Transfer Date to reflect changes in the Transfer Date Infraco Measures made in accordance with paragraph 1.1 above. The target will be equivalent to the Journey Time Capability Score calculated by The Journey Time Capability Model using Infraco Measures applicable at Transfer Date but with N( j,p=1 ) set to 79 and N( j,p=2 ) set to 65.
1.6 Should the adhesion available at the rail head prove insufficient to support the enhanced braking rate under normal adhesion conditions and provided that Infraco has made reasonable endeavours in accordance with Good Industry Practice to maintain the enhanced braking rate during the first year following Transfer Date, the target Journey Time Capability score for the Specified Line Upgrade obtained by setting the Infraco Measures in the Capability Model applicable at Transfer Date to reflect the performance of the Train at an open section service brake rate of 0.55ms -2 and a tunnel brake rate of 1.05ms -2, and setting N( j,p=1 ) to 79 and setting N( j,p=2 ) to 65.
1.7 Where changes are made to the Journey Time Capability scores in accordance with paragraph 1.1 above, and the changes affect the Capability Adjustment that would result as a consequence of the achievement of a Specified Line Upgrade as calculated in accordance with paragraph 2 and 6 of this Schedule 4.1, a corresponding Specific Project Adjustment for the Specified Line Upgrade shall be agreed by both parties. This will be inserted into the relevant row within column 3 "Increase in Underlying ISC" of Table 1 of Appendix 3 of this Schedule 4.1. The value of the Specific Project Adjustment shall be calculated such that the sum of the Capability Adjustments following the achievement of the Specified Line Upgrade and the Specific Project Adjustment shall be equal to the Capability Adjustments which would have resulted had the Journey Time Capability scores not been amended in accordance with paragraph 1.1 above.
2. Benchmark Adjustments at Transfer Date
Except in the circumstances set out in paragraphs 3 to 7 of this Appendix 2 below, the values of the key performance levels ( "kink-points" ) in respect of each BCV Line or Line Grouping shall be those set out in the table below.

3 Upon the publication of the complete set of agreed performance data as achieved by Infraco up to the Transfer Date, LUL shall calculate the following values in accordance with the process used to calculate the figures in the table below and agree them with Infraco:

(a) The sum of 2.9 and the arithmetic mean of the aggregate Ambience scores achieved by the Infraco in respect of all BCV Lines over the eight Quarterly Periods most recently completed on or before the Transfer Date ( the Ambience Benchmark Comparator );

(b) the product of 1.05 and the arithmetic mean of the aggregate Availability scores for each BCV Line, in each case excluding the Lost Customer Hours deemed to result from Speed Restrictions caused by the Infraco ( "TSR LCHs" ), from and including Period 5 2000/2001 to the period ending on the Transfer Date ( the Line Availability Benchmark Comparators );

(c) the sum of the Line Availability Benchmark Comparators ( the Availability Benchmark Comparator );

(d) the values derived by subtracting 53,000 for the Bakerloo line, 208,100 for the Central line, 104,200 for the Victoria line and 4,500 for the Waterloo & City line from the appropriate Line Availability Benchmark Comparator ( the Line Specific Changes );

(e) the sum of the Line Specific Changes ( the Infraco Availability Change );

(f) the values derived by dividing the Line Specific Changes by the Infraco Availability change ( the Line Deterioration Contributions );

(g) the sum derived by subtracting 409,000 from the Availability Benchmark Comparator ( the Availability LCH Deterioration );

(h) the sum derived by subtracting the Availability Benchmark Comparator from 330,600 ( the Availability LCH Improvement ).
4 In the event that the Ambience Benchmark Comparator is equal to or less than an MSS score of 68.1 then the Performance Levels shown in the Table below shall be adjusted so that the Ambience - Benchmark ( A BMK ) becomes an MSS score equal to the Ambience Benchmark Comparator plus 0.6.
5 In the event that the Ambience Benchmark Comparator is equal to or greater than an MSS score of 69.9 then the Performance Levels shown in the Table below shall be adjusted so that the Ambience - Benchmark ( A BMK ) becomes an MSS score equal to the Ambience Benchmark Comparator minus 0.6.
6 In the event that the Availability LCH Deterioration is greater than 8,200, the Performance Levels shown in the table below for each individual BCV Line shall be adjusted to comply with the following rules: (a) the values for Availability - Benchmark ( hours ) ( BH BMK ) figures for each specific Line in the table below shall be adjusted to the number produced by adding the product of the Line Deterioration Contribution and the Availability LCH Deterioration to the figure for that line for Availability - Benchmark ( hours ) ( BH BMK ) included in the table below;

(b) the Availability - Unacceptable ( hours ) ( VH UNAC ) figures for each specific Line in the table below shall be adjusted to the number produced by multiplying the revised values of Availability - Benchmark ( hours ) BH BMK ) figure for that line by 1.50 and dividing the result by 1.05.
7 In the event that the Availability LCH Improvement is greater than 8,200, the Performance Levels shown in the table below for each individual BCV Line shall be adjusted to comply with the following rules: (a) the values for Availability - Benchmark ( hours ) ( BH BMK ) figures for each specific Line in the table below shall be adjusted to the number produced by subtracting the product of the Line Deterioration Contribution and the Availability LCH Improvement from the figure for the line for Availability - Benchmark ( hours ) ( BH BMK ) included in the table below;

(b) the Availability - Unacceptable ( hours ) ( VH UNAC ) figures for each specific Line in the table below shall be adjusted to the number produced by multiplying the revised values of Availability - Benchmark ( hours ) BH BMK ) figure for that line by 1.50 and dividing the result by 1.05.

Capability, Availability and Ambience Levels

BCV Capability and Ambience Benchmark table The table below sets out the values of the key performance levels ( "kink-points" ) in respect of each BCV Line or Line Grouping.
Bakerloo Line Availability Benchmark table





Bakerloo Line


LUL Accounting Period

Availability -

Cap ( hours )

BH CAP

Availability -

Benchmark ( hours )

BH BMK

Availability -

Unacceptable ( hours )

BH UNAC


Payment Period 1 to 3 2003/04

0

58,600

83,800
Payment Period 4 to 6 2003/04 0 61,400 87,700
Payment Period 7 to 13 2003/04 0 61,600 88,000


Payment Period 1 to 13 2004/05

0

61,600

88,000


Payment Period 1 to 13 2005/06

0

57,500

82,100


Payment Period 1 to 13 2006/07

0

57,300

81,900


Payment Period 1 to 13 2007/08

0

57,000

81,400


Payment Period 1 to 13 2008/09

0

56,900

81,400


Payment Period 1 to 13 2009/10

0

56,600

80,800
Central Line Availability Benchmark table




Central Line


LUL Accounting Period

Availability -

Cap ( hours )

CH CAP

Availability -

Benchmark ( hours )

CH BMK

Availability -

Unacceptable ( hours )

CH UNAC


Payment Period 1 to 3 2003/04

0

214,100

305,900
Payment Period 4 to 6 2003/04 0 225,600 322,300
Payment Period 7 to 13 2003/04 0 225,600 322,400


Payment Period 1 to 13 2004/05

0

224,700

321,100


Payment Period 1 to 13 2005/06

0

224,400

320,600


Payment Period 1 to 13 2006/07

0

224,000

320,100


Payment Period 1 to 13 2007/08

0

223,900

319,900


Payment Period 1 to 13 2008/09

0

223,900

319,800


Payment Period 1 to 13 2009/10

0

223,800

319,800
Victoria Line Availability Benchmark table




Victoria Line


LUL Accounting Period

Availability -

Cap ( hours )

VH CAP

Availability -

Benchmark ( hours )

VH BMK

Availability -

Unacceptable ( hours )

VH UNAC


Payment Period 1 to 3 2003/04

0

112,900

161,200
Payment Period 4 to 6 2003/04 0 118,800 169,700
Payment Period 7 to 13 2003/04 0 118,900 169,800


Payment Period 1 to 13 2004/05

0

117,600

168,000


Payment Period 1 to 13 2005/06

0

117,500

167,800


Payment Period 1 to 13 2006/07

0

117,300

167,500


Payment Period 1 to 13 2007/08

0

117,200

167,400


Payment Period 1 to 13 2008/09

0

117,100

167,300


Payment Period 1 to 13 2009/10

0

117,000

167,100
Waterloo and City Line Availability Benchmark table


Waterloo &

City Line


LUL Accounting Period

Availability -

Cap ( hours )

WH CAP

Availability -

Benchmark ( hours )

WH BMK

Availability -

Unacceptable ( hours )

WH UNAC


Payment Period 1 to 3 2003/04

0

4,600

6,600
Payment Period 4 to 13 2003/04 0 4,800 6,900


Payment Period 1 to 13 2004/05

0

4,800

6,900


Payment Period 1 to 13 2005/06

0

4,800

6,900


Payment Period 1 to 13 2006/07

0

4,800

6,900


Payment Period 1 to 13 2007/08

0

4,800

6,900


Payment Period 1 to 13 2008/09

0

4,800

6,900


Payment Period 1 to 13 2009/10

0

4,800

6,900


APPENDIX 3 - Specific Projects
This Appendix 3 sets out the Specific Projects which Infraco is required to Deliver into Service in accordance with Schedule 2.1 of the PPP Contract for each BCV Line. An Earliest Implementation Date and a Latest Implementation Date are shown in Table 1 for each Specified Line Upgrade. A Latest Completion Date for each Specific Project ( excluding Specified Line Upgrades ), and potential deductions for late Delivery into Service of each such project in each Payment Period following the Latest Completion Date, and for late completion of all Snagging Items, are also shown.

Table 1 - Specified Line Upgrades

Table 2 - Train Refurbishments



Line

Name of Project

Latest Completion Date

Deduction for Late Delivery per Payment Period

Snagging Item deduction per Payment Period


Bakerloo

Train Refurbishment

31 st March 2020

£340,000

£10,000


Central

Train Refurbishment

4 th March 2017

£150,000

£10,000


Victoria

Train Refurbishment

17 th August 2013

£260,000

£10,000


Train Refurbishment

28 th February 2032

£3,000,000

£10,000


Waterloo & City

Train Refurbishment

4 th March 2017

£15,000

£10,000

Table 3 - Enhancement to Station Facilities



Line

Name of Project

Latest Completion Date

Deduction for Late Delivery per Payment Period

Snagging Item deduction per Payment Period


All Stations on all BCV Lines not subject to a Station Modernisation or Station Refurbishment ( as defined in Appendix 15 of Schedule 2.1 ) by the date of the first Periodic Review

Enhancement to Station Facilities

First Periodic Review

£20,000

£10,000

Table 4 - Station Modernisation, Enhanced Station Refurbishment and Station Refurbishments



Line

Name of Project

Latest Completion Date

Deduction for Late Delivery per Payment Period

Snagging Item deduction per Payment Period


All BCV Lines

Station Modernisation

Modernisation Completion Date

£200,000

£10,000


All BCV Lines

Enhanced Station Refurbishment

Enhanced Refurbishment Completion Date

£125,000

£10,000


All BCV Lines

Station Refurbishment

Refurbishment Completion Date

£50,000

£10,000

Table 5 - Station Accessibility Projects



Line

Name of Project

Latest Completion Date

Deduction for Late Delivery per Payment Period

Snagging Item deduction per Payment Period


Bakerloo

None

-

-

-


Central

Greenford

1 st March 2008

£12,000

£10,000


Hainault

4 th March 2006

£23,000

£10,000


Leytonstone

3 rd March 2007

£25,000

£10,000


Newbury Park

1 st March 2008

£13,000

£10,000


Victoria

None

-

-

-


Waterloo & City

None

-

-

-

Table 6 - Additional Projects



Line

Name of Project

Latest Completion Date

Deduction for Late Delivery per Payment Period

Snagging Item deduction per Payment Period


Victoria

Additional Escalator ( no.2 ) Vauxhall

4 th March 2006

£20,000

£10,000


Bakerloo

Additional fixed staircase - Charing Cross

6 th March 2010

£5,000

£10,000
APPENDIX 4 - Service Control Use Case Analysis
For the purposes of this Appendix 4, the following definitions will apply to the projects listed in the tables as set out in this Appendix:

Specified Line Upgrade means those parts of the Specified Line Upgrade or Journey Time Capability upgrade which Infraco intends to deliver in order to achieve the associated improvement in Service Control. The main element is the provision of a new signalling control system featuring central control, automatic Train regulation, automatic Train supervision.

TIMIS Upgrade means the works envisaged by Infraco to enhance the initially contracted scope of the TIMIS system such as to deliver the TIMIS Upgrade scores in Table 1 below. These works include upgrades for the train service control systems and passenger information systems and the real-time server computers.

New Control Centre means provision of a new or refurbished room to form the overall control centre for a defined section of railway. The control centre will house the line control staff and contain the operator interface for systems such as the signalling control system ( delivered through the Specified Line Upgrade ) and central communication systems ( including public address, tunnel telephone control, station CCTV, passenger information control ). Use Case Functionality benefits under this heading exclude those due to the new signalling control system. The control centre will be delivered as part of the Specified Line Upgrade.

Service Control Use Case Analysis
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