§ Chris GraylingTo ask the Secretary of State for Transport what interest rates have been agreed for the different financial facilities being made available by the SRA to Network Rail. [67056]
§ Mr. JamiesonThe interest rates that would be charged in the unlikely event of a drawdown on the standby credit facilities will be
(a) facilities supporting the bridge financing: LIBOR plus 1.5 per cent:1245W(b) facilities supporting the financing of legacy costs: LIBOR plus a margin of between 1.5 per cent. to 6 per cent., depending upon the facility drawn upon and the circumstances of the drawdown;(c) facility for long-term contingency buffer: LIBOR plus 6 per cent.
§ Mr. ChopeTo ask the Secretary of State for Transport (1) what Railtrack's cost of borrowing was in 2001–02; and what the cost of borrowing for Network Rail will be; [71260]
(2) by how much the proposed financing arrangements for Network Rail will increase the buying power of the transport settlement announced by the Chancellor of the Exchequer on 15 July. [71261]
§ Mr. Jamieson[holding answer 19 July 2002]: Railtrack's cost of capital was determined by the Rail Regulator. He determined an eight per cent. rate of return (in real terms) in his October 2000 periodic review.
The interest rate on the finance secured by Network Rail is a commercial matter for the company. Network Rail has been designed to secure a strong investment grade credit rating to raise finance in a cost-effective and efficient manner. It is expected to have a cost of capital substantially lower than that of Railtrack, which will have a significant positive impact on the buying power of the company's income.
§ Tom BrakeTo ask the Secretary of State for Transport if he will place in the Library the documents referred to in the Rail Regulators statement on 27 June on the(a) enhancement refitting, (b) funding and (c) co-operation regime between SRA and Network Rail. [71053]
§ Mr. Jamieson[holding answer 19 July 2002]: These documents remain confidential, as Network Rail has yet to conclude its purchase of Railtrack plc shares. Disclosure now could harm Network Rail's competitive position if its bid failed and the administrators then proceeded with inviting bids for a transfer of Railtrack plc's assets under Schedule 7 to the Railways Act 1993. My right hon. Friend the Secretary of State will review the status of these documents and the information in them if Network Rail's acquisition of Railtrack plc is successfully completed.
§ Mr. RedwoodTo ask the Secretary of State for Transport what his estimated date is for the first day of trading of Network Rail CLG. [72895]
§ Mr. SpellarNetwork Rail have said that it is possible that Railtrack could be released from administration by the end of September.