The PPP Administration Order Rules 2007 (Statutory Instrument 2007/3141)

Introduction

PPP administration is a process to ensure that London Underground Limited (LUL) can continue to provide a safe and reliable train service when a PPP company is, or is about to become insolvent, pending the transfer of the PPP company’s undertaking to another company (or more than one company).

The statutory provisions regarding a PPP administration are provided by sections 220 to 224 and schedules 14 and 15 of the Greater London Authority Act 1999 (‘the GLA Act’). This includes provision for the Mayor to apply to the Courts for an Order to appoint a PPP Administrator if one of the PPP infrastructure companies is about to become insolvent, and enables the legal structure of a PPP Administration to be put in place.

However the detailed processes and procedures need to be provided for by a statutory instrument such as the PPP Administration Order Rules 2007 ('the PPP Rules'). The purpose of the PPP Rules is to provide rules of court procedure to underpin the special insolvency procedure applicable to a PPP administration, together with greater detail on the process and procedure that would be adopted. The PPP Rules cover a wide range of issues, including:

Service of court petition;
Statement of affairs and proposals to creditors;
Meetings;
Arrangement for the PPP Administrator;
Court procedure and practice;
Proxies and representation;
Forms to be used during the PPP administration.

PPP administration is in many ways similar to the administration procedure which can apply to 'normal' companies facing insolvency, and the PPP Rules are similar to the Insolvency Rules 1986 which provide rules of court procedure to underpin the 'normal' administration procedure under the Insolvency Act 1986.

First consultation - October 2004

The Department undertook a public consultation on a draft version of the PPP Rules in the Autumn of 2004. The consultation closed on 21 January 2005. While the consultation was primarily aimed at groups with an interest in London Underground, the PPP and insolvency, we also welcomed the views of anyone interested in London's transport.
The consultation documents can be found at:

Draft London Underground Public Private Partnership Administration Rules (2004 version)

Second consultation - December 2006

A further round of consultation was undertaken in 2006/07. This was to notify those who had responded to the first exercise of the latest version of the PPP Rules. It also included a summary of the replies to the first consultation and the Department's response on each issue raised, enabling the Department to confirm that it had correctly interpreted the large number of technical issues raised. Again, we also welcomed the views of anyone interested in London's transport.

The second consultation documents can be found at:

Draft London Underground Public Private Partnership Administration Rules (2006 version)

Organisations who responded to the second consultation

Friends of Capital Transport Campaign
City of London Law Society
London TravelWatch
London Underground Limited
Office of the PPP Arbiter

A summary of the responses received to the second consultation and the Department's response to the issues raised is provided below:

2nd PPP Rules Consultation: response summary and outcomes (PDF, 20KB)

The PPP Administration Order Rules

The Government has now made the PPP Rules and they will come into force on 30 November 2007. The PPP Rules are provided below, together with the explanatory memorandum.