The European Investment Bank (EIB) will provide a 35-year loan worth £1bn to fund transport projects in London, UK.
The loan will support major projects, including significant upgrades by the UK Transport for London (TfL) at Victoria and Bank underground stations, as well as the track renewal programme, which will transform passenger access at two of the busiest stations.
The Victoria underground station upgrade is one of a number of major projects being made possible through the EIB loan.
Treasury financial secretary David Gauke said: "By providing £1bn worth of investment, vital upgrades can now be made at two of the capital’s busiest stations, making journeys easier for millions of working people. This is part of record lending by the EIB to the UK, which totalled £6bn last year."
The loan was announced during a visit to Victoria underground station to attend the final tunnelling breakthrough on 300m of new tunnels, connecting the new north ticket hall to the south ticket hall.
The existing south ticket hall is being doubled in size to make journeys less crowded for the growing number of customers using the station.
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TfL finance managing director 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 funding will represent step-free access between underground trains and street level at both Victoria and Bank Tube stations as well as provide quicker and easier access for passengers changing between Bank and Monument London Underground stations.
The loan will also allow the renewal of tracks, points and drainage on more than 102km of the London underground network, including more than 18km of tunnels.
It represents the largest loan issued by EIB for London transport projects since Crossrail.
The EIB has provided more than £8.1bn for transport investment across the UK, including £5bn for transport in London, over the last decade.
In recent years, the EIB has supported extension of the Northern and East London lines, transformation of the London overground network and Thameslink, as well as improved connections on the Dockland Light Railway and Heathrow Express.
Earlier this year, EIB provided a £480m loan for the Northern Line extension to Battersea, London, UK.
The loan represents around 50% of the overall cost of the new London Underground link that will result in the construction of tens of thousands of new homes, offices and support 24,000 jobs.
Image: Aerial view of South ticket hall worksite showing entrance and canopy. Photo: courtesy of European Investment Bank.