"Michael Bell" wrote in message
. uk...

So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!


From the DfT, in the official jargon:

Crossrail's expected cost of up to £16bn will be met by Government,
businesses and farepayers, each contributing around one third:

* Government will contribute by means of a grant from the Department for
Transport of over £5 billion during Crossrail's construction;

* Crossrail farepayers will ultimately contribute around another third of
the cost, with projected operating surpluses used to service debt raised
during construction by Transport for London, and by Network Rail in respect
of the works on the national rail network;

* London businesses will contribute broadly another third through a variety
of mechanisms:

etc etc...

Its that 'debt raised during construction' that explains your gap until
fares start coming in.

Paul

On Oct 10, 1:42 pm, "Paul Scott"
wrote:
"Michael Bell" wrote in message

. uk...



So, DfT will pay 1/3 = £5Bn. "The City" will pay another 1/3. Where is
the last 1/3 coming from? Fares we are told. But they will only come
when Crossrail is running, and there will be a gap of at least 10
years before then. Pain! I can foresee TfL's arm being twisted to
breaking to pay more. Upfront!

From the DfT, in the official jargon:

Crossrail's expected cost of up to £16bn will be met by Government,
businesses and farepayers, each contributing around one third:

* Government will contribute by means of a grant from the Department for
Transport of over £5 billion during Crossrail's construction;

* Crossrail farepayers will ultimately contribute around another third of
the cost, with projected operating surpluses used to service debt raised
during construction by Transport for London, and by Network Rail in respect
of the works on the national rail network;

* London businesses will contribute broadly another third through a variety
of mechanisms:

etc etc...

Its that 'debt raised during construction' that explains your gap until
fares start coming in.


It's a reasonably safe bet for the financial markets: Crossrail will
produce pretty big takings over the first decade of operation, and
even if it doesn't the debt is underwritten by the government. Getting
a long-term loan on that basis should be easy.

Jonn