Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Eurotunnel wins 34-year extension

Chris Godsmark
Saturday 20 December 1997 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The British and French Governments last night agreed to extend Eurotunnel's concession to run the Channel Tunnel by 34 years in return for a share of the group's profits.

The settlement means Eurotunnel's licence to run the Tunnel has been extended from 2052 to 2086. The two governments will receive 59 per cent of any profits earned, including corporation taxes, after the original end to the concession. The anticipated extension was seen as critical to Eurotunnel's struggle to restructure its pounds 9bn debt burden with its lenders. A deal was finally reached a few weeks ago.

The UK authorities had been reluctant to extend the concession unless Eurotunnel promised to send more freight by to the Continent by rail. Announcing the agreement last night, John Prescott, Deputy Prime Minister, said Eurotunnel would limit charges to new rail freight operators.

Separately last night, Eurotunnel said it had settled its long running dispute with TransManche Link (TML), the consortium of construction companies which built the Tunnel.

The deal will see TML paying pounds 40m to Eurotunnel and drop all remaining claims against the operator.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in