The European Investment Bank (EIB) has agreed to provide £1bn for investment in the London transport network.
The 35-year loan from Europe’s long-term lending institution will support major projects, including significant upgrades by Transport for London at Victoria and Bank Tube stations, which will transform passenger access at two of the busiest stations in the capital.
Treasury financial secretary David Gauke said: “This announcement shows our plan to secure a good deal for the UK from the EU’s European Investment Bank is working.”
Commuters and visitors to the capital will benefit from step-free access between underground trains and street level at both Victoria and Bank Tube stations once work backed by the new EIB loan is completed.
As well as transforming Victoria Tube station, the EIB loan will enable works to be carried out to give quicker and easier access for passengers changing between Bank and Monument stations, the fourth busiest interchange on the London Underground network.
The loan will also be used to renew tracks, points and drainage on more than 102km of the London Underground network, including over 18km of tunnels.
Transport for London managing director for finance Steve Allen said: “More than 80M customers already pass through Victoria Tube station each year and, once complete, this vital modernisation work will help us keep pace with London’s rapidly growing population.
“The loan from the EIB is essential in enabling us to make the continued improvements to the transport network that support new jobs, homes and economic growth in London and beyond.”
The cash represents the largest loan for UK transport investment since support for Crossrail was agreed six years ago.
Over the last decade the EIB has provided more than £8.1bn for transport investment across the UK, including £5bn for transport in London.
Last year the EIB provided a record £6bn for long-term investment in key infrastructure across the UK.