Silvertown Tunnel shows the power of modern public-private partnerships
A construction worker in the new Silvertown Tunnel in east London (PA Images / Alamy Stock Photo)
2 min read
This week marks the opening of the Silvertown Tunnel – a project that stands as a compelling example of the effectiveness of contemporary public-private partnerships (PPPs) in delivering critical infrastructure.
The 1.4km twin-bore tunnel connecting North Greenwich to Silvertown will address a longstanding infrastructure gap in east London while showcasing how modern PPP arrangements can drive innovation and deliver value for taxpayers.
The Riverlinx group, chosen through a competitive bidding process, had specialised tunnel building experience that Transport for London admitted it lacked internally. TfL's chief finance officer, Simon Kilonback, said Riverlinx was "vastly experienced in building road tunnels", and therefore better positioned to deliver the programme effectively.
The benefits are clear. Firstly, Riverlinx bears the risks associated with construction, maintenance, and operation, meaning that taxpayers are protected from potential cost overruns. I firmly believe this has been a key factor in this major infrastructure investment being delivered on time and to budget. The 25-year maintenance agreement ensures that the infrastructure will be properly maintained over its lifespan, avoiding the deterioration that often plagues public assets. Most importantly, availability payments to Riverlinx are tied to performance metrics, ensuring accountability throughout the 25-year contract period.
Whilst early PPPs in the UK, such as the TubeLines and Hospitals PFIs, have faced criticism for poor value, inflexibility and lack of transparency, the Silvertown Tunnel demonstrates how the model has evolved. Modern PPP arrangements include more sophisticated risk allocation, greater transparency, and better alignment with public policy objectives.
Looking forward, as our government seeks to boost infrastructure spending and efficiency, the Silvertown Tunnel provides vital insights into how contemporary PPP models can successfully deliver complex projects in the UK. Rather than dismissing PPPs based on experiences from decades past, we should examine this modern example and consider how similar approaches might address other infrastructure gaps.
In my role on the All-Party Parliamentary Group for Infrastructure (APPGI), we have already put in place a series of high-level roundtable events to bring industry perspectives into policy advice and to create dialogue between industry experts and lawmakers.
As Members of Parliament, we should recognise that this project shows that with proper structuring, rigorous procurement and ongoing, robust commercial oversight, public-private partnerships can successfully deliver critical infrastructure that serves the public interest while providing value for taxpayers.
Mike Reader is the Labour MP for Northampton South and Labour's business champion for construction
