The European Investment Bank (EIB) has finalised a £480 million loan to finance an extension of London’s Northern line.
Ferrovial Agroman Laing O’Rourke was awarded the main £500 million construction contract for the project, which will connect Battersea with Kennington via Nine Elms, in the summer.
Approval of the loan, which will cover around half of the total capital cost, will allow construction to begin this spring. The line could be open to passengers as soon as 2020.
The extension is being built without public funding. The loan will be repaid by the development company rejuvenating Battersea Power Station and business rates from the nine Elms Enterprise Zone.
Jonathan Taylor, EIB vice president, said: “Long-term investment to improve transport connections in Europe’s largest city benefits both passengers and businesses.
“The European Investment Bank 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 new engagement builds on recent EIB backing for significant investment in Crossrail, London Overground and the DLR.”
