Network Rail Debt

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Morgsie

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Someone asked me this question. Why has NR got debts of billions of pounds? (approx £25 billion)

I said I don't know.
 
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HSTEd

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As I understand it Network Rail would have inherited a large part of the Railtrack debt at the effective renationalisation.
 

IanXC

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Thats my understanding too.

Network Rail has also borrowed against specific assets for certain upgrade projects too, take the Chiltern upgrade, for which the franchise pays a facility charge in respect of.
 

WatcherZero

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Its also the main way of financing improvements as the Government doesnt really cough up enough hard cash. You want to spend £200m improving a major station or a billion on line improvements? NR borrows the money and repays it over a 30 year period by putting up track access charges.
 
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