HC Deb 26 October 1988 vol 139 cc300-2W
Sir Geoffrey Finsberg

To ask the Secretary of State for Transport how many major transport infrastructure projects have been privately financed since 1979.

Mr. Portillo

[pursuant to his reply, 24 October 1988, c. 97–8]: Information concerning railways, light rail, river services and roads were omitted in error. The complete answer follows:

Since 1979 the transport infrastructure projects, costing over £10 million, financed fully or partly by the private sector and known to my Department are:

Channel Tunnel The construction of the tunnel—Europe's largest ever private sector civil engineering project—has been entirely financed through the international capital markets. There is no Government funding or financial guarantee; this is ruled out by the treaty and the Channel Tunnel Act. The total financing requirement is £6 billion. This has been raised through £1 billion of equity and £5 billion in credit facilities with an international group of lending banks.

Ports The privatised Associated British Ports was formed in 1983. Total capital expenditure of the 23 major port authorities from 1980 to 1987 was £534.5 million, including the following major port developments:

Dover Reclamation of camber and creation of new berths in Eastern Docks (over 5 years) £20 million

Immingham Deepwater LPG terminals—new dock facilities £35 million

Ramsgate New linkspans, land reclamation and outer wall £17 million

Southampton Container handling cranes and machinery £17 million

Airports British Airports Authority, privatised in 1987, invested £182 million in capital projects in the year to March 1988 including the north terminal at Gatwick and the new terminal under construction at Stansted. In addition, London City airport was built by John Mowlem and Company plc at a cost of some £32 million and is owned by them. The airport opened in October 1987.

Railways Paddington to Heathrow rail-link is to be financed largely from the private sector.

Light Rail The cost of constructing an extension to Bank of the Docklands Light Railway and upgrading the initial railway includes a contribution of £68 million from private developers Olympia and York. A further extension to Beckton, if approved by Parliament, will be paid for by the LDDC from increased land values accruing as a result of the railway's construction. Private sector involvement is also expected in the Greater Manchester Metrolink light rail scheme and in the Avon and Leeds projects that are being developed.

River services The Thamesline high-speed riverboat service is a totally private sector public transport operation linking Chelsea, Westminster, Canary Wharf and Greenwich.

Roads The Dartford-Thurrock crossing was begun in August this year at an estimated cost of £86 million. The potential for private sector involvement in the second Severn crossing is being fully explored.

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