BAA agrees £230m funding package for Crossrail

BAA has agreed a £230m funding package for Crossrail in return for a guarantee of a fast train service four times an hour from Heathrow.

The service will run from airport through central London, the City and Canary Wharf to Shenfield and Abbey Wood.

The deal was announced today by BAA strategy director Mike Forster and Transport Minister Andrew Adonis.

Commenting on the deal Adonis said: "Crossrail is the largest addition to the transport network in 50 years, and today's announcement that BAA have confirmed a £230 million funding package for the project represents a major step towards its delivery. Business has long been a strong advocate for Crossrail and this is borne out today.

"Trains will run four times an hour for most of the day - cutting journey times across London and the South East and significantly improving rail access to Heathrow for thousands of passengers and airport workers every day."

Meanwhile Mayor of London Boris Johnson said: "The agreement with BAA is very welcome news and underlines the commitment that businesses, as well as TfL and the Government, are showing towards delivering the funding package for Crossrail.

"This is another significant step forward in preparing for the construction of this landmark new railway. Works have already begun at Tottenham Court Road station and the contracts to design and build the multi-billion pound project are all on track to be awarded by spring 2009. All parties are committed to Crossrail's success, and together we will deliver it on time and on budget."

Crossrail is to run from Maidenhead and Heathrow in the west through new tunnels under central London to Shenfield and Abbey Wood in the east.

The £16bn project will see the creation of new stations at Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street, Whitechapel and the Isle of Dogs (Canary Wharf).

The project is expected to be completed in 2017.