1994

March

The Department issues pre-qualification documents for the Link project. Nine consortia respond to the invitation.

June

Four consortia pre-qualify and are invited to submit full proposals.

1995

June

LCR and Eurorail CTRL Limited are short-listed.

December

LCR and Eurorail CTRL Limited submit their final bids.

1996

February

The Department and LCR sign the contract for the project.

May

The contract becomes fully effective and the Department transfers to LCR the Government-owned companies Union Railways Limited and European Passenger Services Limited (later renamed Eurostar (UK) Limited).

November

Fire in the Channel Tunnel seriously damages the lining of one of the two running tunnels.

December

Royal assent of the Channel Tunnel Rail Link Bill.

1997

February

Department receives a notice from LCR stating that second stage financing would be delayed from October 1997 to April 1 998 but that LCR would exhaust its funds from the first stage financing in January 1998. LCR proposes bridging this funding gap by selling Eurostar train sets and leasing them back from the new owner.

June

LCR provides the Department with a draft report documenting the findings of L.E.K. Consulting on future Eurostar UK patronage.

July

Ministers meet LCR to discuss bridging the funding gap in its finances.

August

Department sends a letter to LCR setting out the terms upon which the Department would agree to the sale and lease back of the Eurostar train sets.

September

LCR receives the full report from L.E.K. Consulting and realises that Eurostar UK may lose £750 million more in the medium-term than forecast. The scale of the expected loss puts the second stage financing beyond LCR's reach. LCR enters into extensive discussions with the Department.

LCR also enters into discussions with Railtrack to ascertain its appetite for becoming involved in the project.

1998

January

LCR breaks off negotiations with Railtrack and approaches the Department with a request for an additional £1,200 million15 of direct grants. The Department rejects LCR's request but, in accordance with the contract, grants it a cure period of 30 days to prepare a more acceptable rescue package.

February

LCR presents the outline of a proposal that the Department finds acceptable enough to grant an extension to the cure period. The Department allows LCR to sell and leaseback its Eurostar trainsets.

June

The Deputy Prime Minister announces that the Department, LCR and Railtrack have signed a Statement of Principles for restructuring the project.

October

Construction starts of Section 1 of the Link.

1999

February

Following state aid clearance with the European Commission, Government-guaranteed bonds are issued by LCR. Restructured deal implemented.