The proposed Northern Line Extension in south London to serve Nine Elms and Battersea is likely to cost between £800M to £900M, it was revealed yesterday.
Transport for London (TfL) managing director for planning Michèle Dix told the London Assembly transport committee that including a station at Nine Elms as well as Battersea would add £100M plus a 35% optimism bias to the original £530M expected cost.
However, the scheme is facing difficulties since Battersea Power Station, backed by developer Treasury Holdings, began to face financial woes last month. The developer of the station is expected to contribute £200M towards the scheme.
Dix said TfL and London mayor Boris Johnson were committed to the scheme. Other funding could come from other developers — an expected £100M — as well as by using a Community Infrastructure Levy or enhanced business rates via Tax Incremental Financing. This would be easier if the area is made into a Business Enterprise Zone.
Dix said that the debate, which had “come to a bit of a judder” because of Treasury Holdings’ situation, was focused on who would be able to raise the debt for the scheme — an issue made more complicated because TfL has reached the limit of its borrowings.