29.01.15
EIB to invest £480m in Northern Line extension
The European Investment Bank (EIB) is to invest £480m in the extension of London Underground’s Northern Line to Battersea.
The long-term loan, which represents nearly 50% of the overall cost of the project, will enable the construction of thousands of new homes and offices and will support 24,000 jobs helping to regenerate Vauxhall, Nine Elms and Battersea once operational.
Jonathan Taylor, EIB vice-president, said: “Long-term investment to improve transport connections in Europe’s largest city benefits both passengers and businesses. The EIB is pleased to support this extension of the Northern Line. It will both improve connections to Battersea and unlock regeneration in Wandsworth, Lambeth and Southwark. This will also be supported by innovative contributions from developers.”
The EIB loan will be repaid from a combination of contributions from the developments in the area that will benefit from the extension and business rates from the Nine Elms Enterprise Zone from 2016.
Once operational in 2020, the new line is expected to cut journey times from Battersea to the West End and the City to 15 minutes.
Mayor of London Boris Johnson added that the EIB loan is a “pivotal milestone” in plans to regenerate and develop a new transport link supporting new homes and jobs.
Over the last five years the EIB has invested more than £4.5bn in transport projects across the UK, including construction of Crossrail and London Overground. Outside of the capital it has backed the Manchester Metrolink and provided investment for the new Eurostar fleet and the 596 IEP train carriages to be built in County Durham and used on the East Coast and Great Western main lines.
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