In the year 2007, Hong Kong MTR Corporation Limited (MTRC) was presented a 20% stake in Metronet Rail (Metronet), among the two private sector engineering associations contracted to run and keep the London Underground railway network, under a 30-year public private partnership (PPP) arrangement with the London Underground Limited (LUL).
This investment had the probable to convert MTRC from a local rail operator into an overseas player, giving the Company a major foothold in managing urban rail systems in Europe. On the other hand, the LUL PPP was widely regarded as one of the most complicated private finance arrangements in the United Kingdom public sector, and there were a host of uncertainties for Hong Kong MTRC to compete with about its ability to make a success of the undertaking. This instance would enable students to investigate the motives behind the PPP agreements to operate government assets and the implications of PPP for financial strategy and management's operating. At the exact same time, students may also evaluate the offer made to the appropriateness of the Company's approval and the MTRC.
Public Private Partnership London Underground Limited Case Study Solution
PUBLICATION DATE: April 03, 2009 PRODUCT #: HKU819-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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