Network Rail Debt

[Morgsie]

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

I said I don't know.

 

[HSTEd]

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

 

[IanXC]

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]

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.