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Published

28th March 2001

Knowledge Type

Lessons learned report Case study

Organisation

, National Audit Office

Major Project

DoE: Channel Tunnel Rail Link Negotiations

Of Interest To

Consultants Public sector clients Academia Contractors Investors Leadership teams Operators Private sector clients

Department of the Environment, Transport and the Regions: The Channel Tunnel Rail Link – NAO Summary Report

Summary

Although the Private Finance Initiative deal for the construction of the Channel Tunnel Rail Link was in many respects unique, the lessons to be learned from the project’s near collapse are not. This NAO Summary Report makes three key points: in negotiating with the private sector the Department of the Environment, Transport and the Regions achieved its key objectives through a restructured deal in 1998 that is in many respects more robust, with a better allocation of risk, than the original deal signed in 1996; however, the complex financial arrangements agreed during the restructuring will require significant and long-term Government support for the project; as there is room for debate on the economic case for the Link, the justification for the project is heavily dependent on wider policy benefits envisaged by the Government.