| Event |
1984 | French and British Governments awarded Eurotunnel, a private sector Anglo-French consortium, the concession to build and operate the Channel Tunnel between the United Kingdom and France. |
1987 | The Department identified the need for extra rail capacity in the South East and in particular a new rail link from the Channel Tunnel to London. |
1988 - 93 | The Department investigated designs, routes and sources of finance for the proposed rail link. |
1994 |
|
February | The Department launched a competition inviting interested parties to design, build, finance and operate a new high-speed rail link between the Channel Tunnel and London St Pancras. |
June | The Department invited four consortia, including London & Continental Railways (LCR), to submit full proposals. |
November | Eurostar international train services began running through the newly opened Channel Tunnel, but on existing UK domestic lines between London Waterloo and the Channel Tunnel. |
1996 |
|
February | The Department awarded LCR a contract to build the Channel Tunnel Rail Link (the Link) and run the UK arm of the Eurostar international train service (Eurostar UK). LCR intended to fund construction of the Link from direct Government Grants and from private finance, raised on the back of Eurostar UK's projected revenues. |
May | LCR raised initial financing through £430 million bank loans secured against Eurostar UK revenues. |
1997 |
|
| Actual growth in Eurostar UK revenues for 1996-97 was lower than expected, new 1997-98 projections lower than forecast. |
September | LCR entered into discussions with the Department after determining that Eurostar UK may lose £750 million more in the medium-term than forecast. The scale of the expected loss put raising further financing from private investors beyond LCR's reach. |
1998 |
|
January | LCR requested an additional £1,200 million of direct Government Grants. The Department rejected LCR's request but allowed negotiations to continue. |
June | The Deputy Prime Minister announced that the Department, LCR and Railtrack Group had signed a Statement of Principles for restructuring the project. Main elements of the restructuring included: ■ splitting construction of the Link into two sections: Section 1 from the Channel Tunnel to Ebbsfleet and; Section 2 from Ebbsfleet to St Pancras; ■ bringing Railtrack Group (operator of the UK domestic network) in to manage the construction and, when complete, to purchase Section 1. Railtrack Group was also granted an option to share Section 2 construction risk; and ■ not increasing Government Grants but making financing of the Link no longer dependent on Eurostar UK's performance. Further financing included commercial bank borrowing guaranteed by Railtrack Group and an issue of Government Guaranteed Bonds. |
October | |
1999 |
|
February | As planned under the 1998 restructuring, LCR raised finance to fund construction of Section 1 through an issue of £2,650 million Government Guaranteed Bonds. |
2000 |
|
October | Railtrack Group suffered from financial difficulties following the aftermath of the Hatfield rail accident. |
December | LCR and the Department wanted construction of Section 2 to begin in 2001, as per LCR's programme. Railtrack Group submitted a proposal for exercising its option (agreed as part of the 1998 restructuring) to share Section 2 construction risk. The Department rejected the proposal as too expensive. |
2001 |
|
January | LCR and Bechtel offered the Department an alternative proposal for sharing construction risk on Section 2. While the Department found this proposal unacceptable, it formed the basis of a potential way forward. |
April | The Department accepted the LCR/Bechtel proposal following negotiations. LCR would remain the owner of Section 2 once it is complete. Railtrack would not be involved in the construction of Section 2. |
July | Construction began on Section 2. |
October | As a result of continuing financial difficulties, Railtrack plc entered railway administration and subsequently exited the railways business. |
2002 |
|
June | As planned under the 1998 restructuring, LCR, through an issue of £1,100 million of Government Guaranteed Bonds, raised further finance to fund construction of Section 2. |
| LCR purchased Railtrack's interest in Section 1 for £375 million following trilateral negotiations with the Department. LCR would now own both Section 1 and Section 2. |
2003 |
|
September | Section 1 opened on time and within budget; operational performance exceeds expectations. |
November | LCR raised approximately £1,250 million in the bond markets to fund construction of Section 2. |
2005 |
|
To date | Construction of Section 2 is progressing to timetable: tunnelling works are complete; tracklaying is underway and; work is ongoing at the new St Pancras international terminal. |