HC Deb 03 July 1995 vol 263 cc61-2W
Mr. Rowe

To ask the Secretary of State for Transport when he expects to announce the result of the competition to build the channel tunnel rail link; and if he will make a statement. [31151]

Dr. Mawhinney

Four tenders were submitted on 14 March this year. The Government and their advisers have now completed their evaluation of the bids. In accordance with their recommendation, I have selected two consortia, Eurorail CTRL Ltd. and London and Continental Railways, who will be invited to go forward for further detailed negotiations.

The Government welcome and applaud the immense effort which all four bidders have put into their tenders. This is another indication of the very real commitment of the private sector to the railway industry of the future. It is already clear that bringing in the private sector is going to add value to both the CTRL project and the European passenger services business. This is another good example of the benefits flowing from the Government's private finance initiative.

The evaluation of the bids has been conducted strictly in accordance with the criteria which were set out in the competition overview document published last summer. The ranking of bids in the first stage has been based mainly on an evaluation of the level and timing of the Government contribution and the approach taken by the bidders to risk, together with a qualitative assessment of their financial proposals. The evaluation also took account of other transport benefits.

There are two very strong candidates left in the race. I am confident that at the end of the coming negotiation phase we shall be in a position to strike a deal which is good for the project and its backers, good for passengers and good for the taxpayer. We are on schedule and I hope to announce the winner of the competition before the end of the year.

Forward to