32. Government grants for Section 1 are payable on the achievement of set milestones and take two forms. The Capital Grant for construction of the Link is £561 million and is payable in eight instalments. The first installment is payable on the last of a) 15 November 2001, b) achievement of 68 per cent of the target construction cost and c) construction progress reaching the start of secondary tunnel lining. The other instalments are payable quarterly.
33. In addition to the Capital Grant, the Government will also pay a Domestic Capacity Charge to Railtrack for the use of the Link by domestic train services. The charge totals £203 million for Section 1 and is payable in 34 instalments. The first installment will be paid on 18 August 2005 or issue of permit to use, whichever is later.
34. Grants for Section 2 of the Link are on a similar basis to those for Section 1 and amount to £1,058 million (capital) and £192 million (domestic capacity charge).