Thameslink financing concerns
1 November 2012
The government is making contingency plans in case the Siemens-led consortium is unable to reach financial close on the Thameslink rolling stock PPP.
Responding to a Parliamentary question, transport minister Simon Burns said the department is working to reach financial close on the project “early in the new year”, but admitted work is also underway in case the money for the £6bn project cannot be found.“I am aware of the consequences of failing to conclude the procurement and as you would expect, my department is closely monitoring progress, including assessing options were it not possible to secure financial close,” he said.
The government could look to use its UK Guarantees initiative to support the project, having already announced that the £1bn Crossrail rolling stock procurement will benefit from the initiative.
XL Trains, a consortium comprising Siemens, Innisfree and 3I, was named preferred bidder for the deal back in June 2011 but has struggled to raise the finance needed for the deal in the tough economic environment.
