3.11 The Government agreed to provide direct grants to fund construction of the Link as both an international and domestic railway. Figure 17 outlines the types of grant involved.
17 |
| ||
|
| Type of grant | Amount (£ millions) |
|
| Direct grants: construction | 1,619 |
|
| Direct grants: domestic capacity | 395 |
|
| TOTAL GRANTS | 2,014 |
|
| Less: Land rentals (note) | (266) |
|
| NET TOTAL | 1,748 |
|
| Note: Land rental payments will be made to the Government, beginning in 2030. | |
|
| Source: The Department | |
3.12 In addition to the direct grants, the Government has provided guarantees to bond investors and has agreed to lend additional funds to LCR to enable Eurostar UK to meet its access charge commitments in the event that revenues do not meet expectations. Additional subsidy will also be paid, initially by the Department and later by the Strategic Rail Authority to support domestic services using the Link. The total amount of public sector support for the project therefore exceeds the present value of the direct grants to be paid by the Department.