§ Mr. Gerald BowdenTo ask the Secretary of State for Transport what constraints his Department sets on financial investment in new infrastructure by British Rail, with particular reference to the required rate of return from investment: if these constraints apply to the British Rail proposals to build a Channel tunnel rail link through Kent and south east London; what is the present projected cost of the Channel tunnel rail link project; at what rate of return the line will operate under the present plans; and at what projected date the CTRL line is expected to make a return on the investment.
§ Mr. PortilloThe Government's required rate of return for commercial public sector programme is 8 per cent. If the Channel tunnel rail link were to be financed by British Rail, it would be appraised using a discount rate reflecting this rate of return. British Rail is currently discussing its proposals with the private sector with a view to securing private investment in the scheme.
The cost of the high-speed link is estimated at about £1.7 billion. Appraisal of the scheme to estimate a rate of return is not yet complete.