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£580m boost for Metro

The Tyne and Wear Metro network will receive £580m in investment for modernisation and ongoing maintenance, the Government confirmed yesterday.

The capital boost has long been in the pipeline for operator Nexus and was been assigned to the project under the proviso that the contract to run the network was put out to tender.

Late last year Nexus opted for German firm DB Regio over an in-house Metro bid to operate the system, with the European company set to take up the reins at Metro in April.

The £500m funding pot will be comprised of the operating subsidy which will be paid from the Government to DB Regio over the life of its contract, alongside capital funds for the upgrade.

Cllr David Wood, chairman of the Tyne and Wear Integrated Transport Authority, said: “This is an unprecedented funding boost for Metro secured at a time when public spending in general is under real pressure.

“Metro is vital to the economy and social life of North East England and has a crucial role to play as our region emerges from recession.

“This announcement is worth something like £2.5bn to the economy through the impact Metro has supporting jobs and opportunity, as well as creating scores more in the engineering and construction sectors.”

Rachel Anderson, head of member relations at the North East Chamber of Commerce, said: “This is a welcome investment for Tyne & Wear and will result in a world class transport system for the region.

“Discussions about the modernisation of the Metro system have been ongoing for some time now so we are delighted that the investment has finally been signed off.

“We welcome DB Regio’s involvement in the area and have every confidence that they will have a positive impact on the metro system from April 2010.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .