Transport for London (TfL) has secured a massive £1bn loan from the European Investment Bank (EIB) to help fund the giant £15.9bn Crossrail project.
Mayor of London Boris Johnson, said: “Our good friends at the EIB have provided us with a billion more reasons to proceed with the unstoppable force that is Crossrail.
“It is one of the largest loans ever secured for a transport project and I am especially pleased to have this backing for our drive to provide London with the facilities required to keep the capital one of the world’s leading cities.”
The £1bn loan will be part of TfL’s ‘core contribution’ to the project.
EIB Vice-President Simon Brooks, said: “Crossrail is the largest construction project in Europe and will make an important contribution to London’s economy.
“By providing a much-needed boost to rail capacity in London and the South East, Crossrail will help to develop London as a sustainable world city by reducing congestion and pollution for the benefit of Londoners, commuters and visitors. It will also link London more efficiently into the European and global transport networks. We at the EIB are delighted to support the project with this loan,” he said.
Of Crossrail’s £15.9bn budget, £7.7bn will be supplied by TfL:
- £3.5bn from the Greater London Authority (Business Rate supplement)
- £2.7bn TfL core contribution
- £0.4bn London Underground ‘interface savings’
- £0.5bn Sale of surplus land and property
- £0.3bn Developer contributions
- £0.3bn London Planning Charge
Of the £2.7bn TfL funding, £2.4bn will come from TfL borrowing linked to future Crossrail fares revenue. The £1bn EIB loan facility will be drawn down over the next six years as TfL transfers cash to Crossrail during construction.
Read our exclusive Crossrail supplement in the September 24 issue.