Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

CTRL does not need Railtrack

News :

RAILTRACK WILL be unable to buy Section One of the Channel Tunnel Rail Link, the Department of Transport, Local Government and the Regions (DTLR) confirmed this week.

Failure to sell the part-completed route from Folkestone to Ebbsfleet in Kent by October 2003 could compromise the financing of the remainder of the project.

Proceeds from the £1.7bn sale were intended to partly fund Section Two of the scheme, from Ebbsfleet to London St Pancras.

This week project promoter London & Continental Railways said that it would be able to raise the funds itself.

'We don't actually need Railtrack, ' said LCR treasurer Mark Bayley, adding that the company is now looking at borrowing the money, as Railtrack had previously planned.

Until recently LCR had been forced to rely on Railtrack's promise to buy section one, because it was too financially weak to bear construction risk (NCE 11 June 1998). Risks of cost overruns on section two are covered by insurance.

Now that section one is more than 80% complete this risk has largely fallen away, strengthening LCR's ability to raise its own finance.

LCR is expected to use track access charges as security for borrowings which will also go towards paying off £700M worth of Railtrack guaranteed bank loans.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.