City funding for Crossrail has been secured - £350M from the Corpration of London - and Crossrail will tranfer to become a wholly owned subsidiary of Transport for London (TfL) tomorrow.
Transport minister Lord Adonis, London Mayor Boris Johnson and Sir Michael Snyder of the City of
London Corporation made the joint statement this morning.
The announcement also included "signing of a series of core funding and governance agreements that will underpin the project", according to the statement.
The City of London Corporation will pay £200M now, and then raise a further £150M from City businesses, but £50M of that money the Corporation has guarenteed.
Johnson also said new legislation contained in the Planning Act, passed last week, could be used to secure additional funding for Crossrail in the future. Boris indicated he would secure contributions from developers, both through use of planning obligations (Section 106 agreements) and once the regulations are implemented, the proposed Community Infrastructure Levy (CIL).
Mayor of London Boris Johnson said: "Crossrail is vital to London’s continued competitiveness. I am committed to doing all I can to ensure it is delivered on time and on budget and these proposals are an important part of the funding package needed to ensure that this important project is finally delivered.
"I recognise we are going through difficult economic times, but once we are through them the arrival of Crossrail will bring huge benefits to those businesses who have contributed."
Transport Minister Andrew Adonis said: "This is a landmark moment in the delivery of Crossrail, and once again signals the commitment of businesses to this vital project. It is a hugely important scheme that will be crucial in keeping London and the rest of the country globally competitive.
"Crossrail will bring 1.5M people within 60 minutes' commute of London's major financial districts, as well as delivering a much needed boost to rail capacity to and from Heathrow Airport. Its construction and operation will also create thousands of new jobs, at a time when they are much needed."
Sir Michael Snyder of the City of London Corporation added: "Crossrail is critical to the future of London's economy and it is essential that we continue to make major improvements to our transport infrastructure during these challenging times."
Tube Lines chief executive Terry morgan was appointed non-executive chair of Crossrail last month, and Crossrai Board members will be appointed in the New Year.
Crossrail will run 118 km from Maidenhead and Heathrow in the west, through new twin-bore 21 km tunnels under central London connecting key London stations including Paddington, Bond Street, Tottenham Court Road, Liverpool Street and Canary Wharf and on to Abbey Wood and Shenfield in the East.
Compulsory Purchase Orders at Tottenham Court Road coming into force in January 2009 ahead of demolition works beginning in the Spring;
Appointment by Crossrail of the companies that will become the Partner and Programme Delivery Partner and of a Design Framework, in the first quarter of 2009;
London Underground tendering for the redevelopment of the Tottenham Court Road Tube station - which will ultimately integrate with Crossrail into one station - with work due to commence in late 2009.