EC loan to help fund Tube line extension: Pounds 98m credit throws lifeline to Canary Wharf project

THE European Community threw a lifeline to the troubled Canary Wharf development in the London Docklands yesterday by agreeing to a loan of pounds 98m to finance the extension of the Jubilee Tube line.

The 15-year loan was made by the European Investment Bank, the EC's financing arm, using a lending facility agreed at last year's Edinburgh summit. It will form a key part of the pounds 400m contribution by the private sector to London Transport for the extension of the Underground line from Green Park in central London to Stratford in east London.

This is one of the most important transport projects in Britain, not least because of its political significance. The collapse of the project had cast doubts over the urban renewal strategy of the Government.

It does not signal the final go-ahead for the project - the approval of the banks and the administrators of Olympia and York Development, which masterminded the Canary Wharf project, must first be sought. But last night London Transport said it was 'delighted' and that the money was 'a big step forward'.

The question of transport to Canary Wharf became critical to its success or failure, but Olympia and York, owned by the Canadian Reichmann brothers, was unable to find the cash.

The project is now being financed by an international syndicate led by Lloyds Bank in association with the EIB. The president of the EC's house bank is Sir Brian Unwin, the former head of Customs and Excise, who arrived at the Luxembourg-based institution only days ago. Last night, he said: 'The Jubilee line extension is an important transport project for the development of London and will add substantially to the activity and employment of the construction industry in the UK and the Community.'

The extra EIB lending agreed at Edinburgh was tilted towards creating new infrastructure in the EC, while helping to lift the European economy out of the doldrums. Britain may also receive funding for the Channel Tunnel rail link from the same source. The loan will enable the Government to point to a concrete example of how the EC is helping the British economy and to the success of the Growth Initiative agreed under the British EC Presidency.

The Government has persistently tried to inject a European element into the project, at one stage lobbying hard to move the controversial European Bank for Reconstruction and Development to Canary Wharf. However, Jacques Attali, the head of the bank, preferred a central location.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
news
Arts and Entertainment
British author Helen Macdonald, pictured with Costa book of the year, 'H is for Hawk'
booksPanel hail Helen Macdonald's 'brilliantly written, muscular prose' in memoir of a grief-stricken daughter who became obsessed with training a goshawk
Sport
footballLive blog: Follow the action from the Capital One Cup semi-final
Life and Style
food + drink
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Tradewind Recruitment: Intervention Teacher Required To Start ASAP.

£125 - £150 per day + Negotiable: Tradewind Recruitment: A 'wonderful primary ...

Tradewind Recruitment: Maths Teacher

£90 - £140 per day: Tradewind Recruitment: Our client is an 11-16 mixed commun...

Recruitment Genius: PHP / Drupal / SaaS Developer

£32000 - £36000 per annum: Recruitment Genius: A rapidly developing company in...

Ashdown Group: Application Architect/Developer - Peterborough

Negotiable: Ashdown Group: Application Architect/Developer - Peterborough, Cam...

Day In a Page

Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Woman who was sent to three Nazi death camps describes how she escaped the gas chamber

Auschwitz liberation 70th anniversary

Woman sent to three Nazi death camps describes surviving gas chamber
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy