Financing the construction of Section 1 of the Link is no longer dependent on the performance of Eurostar UK

1.34  LCR failed to convince investors that the project was a worthwhile investment opportunity because Eurostar UK did not generate the required revenue. The restructured deal is no longer dependent on such a project finance approach. Instead the project will be financed by debt that will not be at risk from the financial performance of Eurostar UK. During discussions, Railtrack informed the Department that it could not commit to purchase the entire Link until the outcome of the Rail Regulator's access charge review for the domestic network was known. The restructured deal therefore divided the construction of the Link into two sections. The Government has guaranteed bonds issued by LCR and Railtrack agreed to provide guarantees that will allow LCR to borrow up to £700 million of commercial debt, during the construction of Section 1.