Funding for major London Underground station upgrades at Victoria and Bank has been secured after the European Investment Bank agreed to provide £1Bn for enhancements to the capital’s Tube network.

The 35 year loan from Europe’s long term lending institution will support passenger access improvements at two of the busiest stations in the city. The funding was announced this week ahead of a key construction milestone at Victoria Underground station, where upgrade works are already well under way.

Engineers achieved a tunnelling breakthrough that links 300m of new tunnels connecting a brand new north ticket hall with the existing south ticket hall, the latter of which is itself being doubled in size. The £700M transformation will provide step free access by 2018.

Transport for London managing director for finance Steve Allen said: “More than 80 million customers already pass through Victoria Tube station each year and, once complete, this vital modernisation work will help us to keep pace with London’s rapidly growing population.

“The loan from the EIB is essential in enabling us to make the continued improvements to the transport network that support new jobs, homes and economic growth in London and beyond.”

The loan will also help TfL to provide quicker and easier access for passengers changing between Bank and Monument stations, and to renew tracks, points and drainage on more than 102km of the London Underground network.

The European Investment Bank has previously supported major projects including Crossrail and the Northern Line extension. But this is the first time the funding stream has been used for a package of projects and renewal works.

TfL director of group treasury Simon Kilonback explained: “It is much better value for us to borrow against future fares and revenue than to enter into PPP or PFI style transactions, because there is more flexibility.”

Image by Chris Sampson, Creative Commons