Profile of franchise payments for GNER and ONE railway

Department for Transport response (2 pages, PDF) to a Freedom of Information Act request, published on 3 April 2006, providing the time profile of premium payments for the passenger rail franchises held by GNER and ONE railway. The amounts disclosed for GNER are in line with the figures quoted in The Daily Telegraph in April 2005. The nominal figures appear to be on the basis of assumed inflation of 2.5 per cent a year and presumably no application of the revenue-sharing provisions in the franchise.

The exact concept underpinning the figures in the NPV column is unclear: the nominal discount rates implied from the data are of the order of 1 per cent for ONE and 6 per cent for GNER.

For further information or advice please contact Franck Latrémolière.

Filed under DfT, ECML, Public transport.

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