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Transport for London awards Capita contract to deliver the new Ultra Low Emission Zone

Leading UK technology-enabled business process management and outsourcing services provider, Capita plc has agreed to expand its current contract with Transport for London (TfL) to include the new Central London Ultra Low Emission Zone (ULEZ) that starts next year.

The new agreement means that Capita will design, implement, and operate the systems, as well as front and back office processes for the Central London ULEZ, on TfL’s behalf. This is in addition to Capita’s current agreement to manage TfL’s Congestion Charging Zone, Low Emission Zone and T-Charge. The ULEZ will replace the existing T-Charge when it launches in April 2019 and is estimated to result in a nearly 50% reduction in NOx emissions by 2020.

The expansion of its current contract to include the implementation and operation of the Central London ULEZ, is expected to be worth £56m (US$75.4m) to Capita from commencement to the end of the current contract term in September 2021. There is also a subsequent pre-priced five-year extension price of £37m (US$50m), subject to TfL taking up the option to extend the contract. The central London ULEZ agreement is a variation of the existing contract between TfL and Capita, which is the largest business process outsourcing and professional services company in the UK.

London currently operates a city-wide Low Emission Zone that affects heavy vehicles, requiring a minimum Euro IV particulate matter (PM) standard, or drivers face a daily charge of £200 (US$269). This is alongside a minimum Euro 3 standard for vans and minibuses to avoid a daily charge of £100 (US$134.5). From April 2019 this will be extended in central London with the introduction of the ULEZ, which will toughen emissions standards for vehicles operating in the zone. Plans are also being considered to widen the zone to a larger area within the capital.

The ULEZ will support the Mayor of London’s ambitious plans to protect citizens and visitors from the damaging health impacts of air pollution. All vehicles within the Central London ULEZ area will need to meet robust exhaust emission standards or pay a daily charge to travel. In March this year, transportation technology provider Siemens was awarded a contract to deliver the traffic management software to enable the enforcement and management of the new ULEZ. The company is already responsible for the enforcement system used in the city’s Congestion Charging (CC) scheme.

“This agreement is testament to our extensive expertise in the provision of technology-led end-to-end customer management, and associated software and IT services,” said Jon Lewis, Capita’s CEO. “It further strengthens the long term strategic partnership between Capita and TfL to deliver mission-critical services across the London transport network. We look forward to playing an important role in implementing this key Mayoral initiative to meet emission objectives for London.”

Paul Cowperthwaite, general manager of Road User Charging at TfL, commented, “This continuation in our relationship with Capita will enable us to deliver a project which is key to improving the health and quality of life of Londoners.”

June 7, 2018

Written by Adam Frost

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