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Canary Wharf pays LU £200M upfront for JLE

DEVELOPER CANARY Wharf has restructured its deal with London Underground so that it will make an immediate £200M payment towards the cost of the Jubilee Line Extension rather than £400M spread over the next 20 years as originally agreed.

Canary Wharf said it had not renegotiated a reduced contribution to compensate for the late opening of the line.

Accelerating the payment meant that although the upfront amount was smaller, it was equivalent to paying £400M over 20 years, a Canary Wharf spokeswoman said.

The figures were revealed by deputy prime minister John Prescott answering a Parliamentary Question this week. He said Canary Wharf had paid 'in the order of £150M' towards the cost of the JLE and added that 'a further and final payment of £50M is due on 1 November 2000'.

Under the original deal struck between Canary Wharf and the Government, the developer was scheduled to pay £98M on completion of the project followed by staged payments over several years, totalling a further £300M.

The Canary Wharf spokeswoman confirmed it had accelerated payment to reduce its liabilities following the refinancing of the company earlier this year.

Meanwhile, the JLE was named Millennium Building of the Year by the Royal Fine Arts Commission Trust.

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