DfT will make nearly £3bn out of Govia GTR
The troubled Govia GTR franchise will pay nearly £3bn into DfT coffers over its seven year life.
The information was reaffirmed in a parliamentary reply by Paul Maynard, an under-secretary at the DfT.
The Govia GTR franchise – which also includes the Southern and Great Northern operations– was let as a management contract. This differs from the usual franchising arrangement in that the ticket revenue is passed on to the DfT and not retained by Govia.
“These figures represent the net balance between payments made under the Management Contract and revenue received, and indicate a payment from the Train Operating Company to the department,” explained Maynard.
The £2.896bn sum excludes revenue support, revenue share, profit share and adjustments for inflation. The figures are subject to contractual change and are based on 2015 price levels: 2015/16 (£275.4m); 2016/17 (£403.8m); 2017/18 (£424.7m); 2018/19 (£404.1m); 2019/20 (£497.2m); 2020/21 (£587.1m); and 2021/22 (£303.6m).
The franchise expires in September 2021.