TfL Ref: 2518-1819

Thank you for your email received by us on 21 December 2018 asking for information about how much Transport For London ( TfL) has spent on the delivery of class 710 trains to date.

Your request has been considered in accordance with the requirements of the Freedom of Information (FOI) Act and our information access policy. I can confirm we do hold the information you require. You asked:

how much TfL have spent on the delivery of class 710 trains to this date. This includes project management, delivery, testing, construction, rectification and other cost attributable to the class 710 that TfL have contributed. This includes any separate funding that TfL may have secured to spend on this project.
Preferably a breakdown of each aforementioned constituent cost would be available

After completion of the manufacturing competition and award of the Manufacturing and Supply Agreement (MSA) and Train Services Agreement (TSA) contracts, a financing competition was run to seek a lessor to finance the manufacturing of the trains and lease them to TfL. A lessor, London Rail Leasing Limited (LRLL) was appointed in early 2016. Costs are being incurred by LRLL and not by TfL. TfL will only start paying rentals to the Lessor once the trains have been accepted.

Costs incurred by LRLL to date consist of payments made to Bombardier under the Manufacturing and Supply Agreement. A redacted copy of Schedule 10 of the MSA (Schedule of Milestones) is published here: https://www.contractsfinder.service.gov.uk/Notice/e64aaef3-b08d-4d39-bf37-919ca77861a1?p=@NT08=UFQxUlRRPT0=NjJ

In accordance with the FOI Act, we are not obliged to supply London Rail Leasing Ltd’s costs to Bombardier as they are subject to a statutory exemption to the right of access to information under section 43(2) - commercial interests. Disclosure of this information would be likely to affect LRLL’S ability to compete effectively in current and future tender exercises and enable competitors to gain a competitive advantage over the lessor.

Prejudice would be likely to occur when such agreements go out for tender in the future, because it would be likely to result in a clustering of bids based on previously negotiated payment rates. Releasing this information would also be prejudicial to LRLL’s ability to compete for tendering opportunities in future by placing specific commercial detail of the company’s financing costs in the public domain.

The use of this exemption is subject to an assessment of the public interest in relation to the disclosure of the information concerned. We recognise the need for openness and transparency by public authorities but in this instance the public interest in ensuring that value for money is obtained outweighs the general public interest in increasing transparency of our processes.

If this is not the information you are looking for, or if you are unable to access it for some reason, please do not hesitate to contact me.

Please see the attached information sheet for details of your right to appeal as well as information on copyright and what to do if you would like to re-use any of the information we have disclosed.

Yours sincerely

Jasmine Howard
FOI Case Officer
Information Governance
Transport For London