Brussels, 02/05/2003 (Agence Europe) - On Wednesday, the European Commission approved a modification to the aid measures in favour of the Channel Tunnel Rail Link (CTRL) recently notified by the British government. It considers this change is compatible with the rules in application for State aid as it promotes the implementation of a European project of major interest. The project, to be carried out by London & Continental Railways Limited, is to build a high speed rail link 109 km long between Saint Pancras station in London and the Channel Tunnel.
The modification provides for a State guarantee for the coverage that London & Continental Railways Ltd plans to set in place. This coverage mechanism will serve to protect society against unfavourable variations in interest rates, which could compromise its medium and long-term financing for the construction of the CTRL. The need for such provisions comes from the fact that Railtrack Group has withdrawn from the project. The Commission considers that the State guarantee is necessary to safeguard private sector participation in the project and to allow London & Continental Railways to harvest sufficient funding to complete the rail link in question. This measure is intended to promote the implementation of a major project of general European interest and is therefore compatible with the EU's rules on competition.