East London Line

Promoter – Financial Intermediary

Transport for London, Windsor House, 42-50 Victoria StreetGB- London SW1H 0TL.

Contact: Stephen Allen, Director Corporate Finance.

Location

• United Kingdom

Description

The project involves the extension and upgrading of the East London Line metro rail route, together with the purchase of rolling stock to run the service.

The existing East London Line provides urban rail services between inner east and inner south-east London over an 8km line originally constructed in 1869. The current project represents the first phase of the project, extending the existing line north for 4 km to Dalston through Objective 2 areas in Shoreditch and Haggerston, and south to New Cross, Crystal Palace and Croydon, as well as significantly increasing its capacity. These extensions will link into other heavy rail and metro routes, thereby improving the accessibility of the deprived areas served to the rest of the London labour market. The new service will also provide important new cross-Thames heavy rail capacity, potentially reducing the pressure on the Thameslink line. Provision will be made for subsequent further extension as part of a future Phase 2.

Objectives

The project represents one of the main priorities for the Mayor of London, and TfL expects the East London Line development to lead to a large increase in usage of the line, reflecting both improved transport opportunities for the areas served and decongestion of other routes. The new line will significantly increase the access of the eligible population to the wider London labour market and so to employment opportunities. The line will be an important element of the transport network supporting the 2012 Olympic Games. The line is also expected have significant long-term regeneration impacts along its route.

Comments

Urban rail public transport.

Sector(s)

• Transport

Proposed EIB finance (Approximate amount)

Up to GBP 400 million (approximately EUR 575 million), as part of the TfL Prudential Borrowing regime.

Total cost (Approximate amount)

Total project costs are expected to be around GBP 1,000 million (EUR 1 500 million).

Environmental aspects

The Project falls within the scope of Annex II of Directive 85/337/EEC (as amended). It is therefore for the competent authority to decide whether a formal EIA is required for the Project. It is understood that statutory authority has already been obtained for the project, which in this case would have included the preparation of the necessary environmental studies and consultation. It is expected that the Project will have a significantly positive impact on the city's overall transport conditions and on the quality of the urban environment.

The original proposal for the East London Line Extension pre-dates the requirements of the Strategic Environmental Assessment Directive, but was brought forward under a statutory planning process which included consideration of the wider environmental effects of the scheme. It is therefore likely to reflect the principles of Directive 2001/42/EC.

The competent authority will be required to confirm that the project complies with the requirements of EU nature conservation policy, according to the Birds and Habitat Directives and Natura 2000.

The project should result in a reduction in greenhouse gasses when compared with the do-nothing trend, and will therefore contribute to mitigating climate change.

Procurement

Transport for London (and any future wholly owned subsidiary) is an organisation that is subject to EU public procurement directives (93/36/EEC {supply}, 93/37/EEC {works} and 92/50/EEC {services} - until directive 2004/18/EC is translated into national law). The Bank will require the promoter to ensure that all contracts to be funded by the Bank will be published and let in accordance with EU directives. Procurement procedures will then be suitable for the project and acceptable to the Bank.

Status

Signed - 21/12/2005