banner image
26.04.2017

"DfT to introduce new risk transfer mechanism on selected franchises"

The RTM has published an article stating that "the government has claimed that plans to introduce a new risk transfer mechanism, the Forecast Revenue Mechanism (FRM), on selected franchises will help ensure that franchising remains attractive to bidders while securing a good deal for taxpayers.

Responding to the transport select committee’s report into rail franchising that was released at the start of February, the DfT has stated that the FRM will offer protection against shortfalls in revenue relative to the winning bidder’s bid revenue line, whist also ensuring that operators share revenue with the government when its franchises outperform forecasts."

Read the full article here.