THE Government is to ask the private sector to take on the west coast

main line's urgently needed #500m infrastructure overhaul, Transport

Minister Roger Freeman announced yesterday.

He has appointed Hambros Bank Ltd to examine the possibility of a

formula which would allow private consortia to undertake the work.

It would be the first time private companies had been invited to pay

for infrastructure work since nationalisation in 1948.

In a written answer to a parliamentary question, Mr Freeman said: ''We

are hopeful that private sector funding will enable us to bring forward

modernisation of one of the premier railway routes in the country.''

The 600-mile line, which links London with north-west England and

Glasgow, has been described by its senior managers as being on the verge

of ''catastrophic failure''.

Track and signalling, mainly south of Preston, are reaching the end of

their 30-year life and are in need of extensive upgrading. The private

sector's involvement would centre on #300m in signalling work.

The Government was approached recently by a trio of companies --

Trafalgar House, Balfour Beatty, and GEC Alsthom -- which wanted to

carry out the work in exchange for the right to charge train operators a

fee for using the line.

A Department of Transport official said the work would have to be

awarded after an open competition. Hambros will report in the autumn.

Its fee is being kept secret on grounds of commercial confidentiality.

In the run-up to privatisation and after a decision announced in the

last autumn statement, the Government is opening the way to private

investment in public projects.

Mr Brian Wilson, Labour's transport spokesman, said: ''It's yet

another paper project. The Government is opting out of responsibility

for ensuring that major infrastructure projects go ahead.''

He said the project would join the queue of other railway projects

waiting for private sector money. These include the London Crossrail

route and the Channel Tunnel rail link.

''If, by any chance, it does go ahead on that basis, the private

sector will be looking for a return which will come only through

increased fares. It is hard to see the west coast line being competitive

on that basis with the east coast.''

The move was welcomed by the Royal Institution of Chartered Surveyors.

Spokesman Mr Peter Caldwell said: ''The Government has to adopt a more

interventionist approach if it wants to attract private sector finance

for public infrastructure projects.

''Nearly eight months have passed since the Government first launched

its initial plans to attract private capital into such projects; so far,

very little has happened and a mood of disenchantment is setting in.

This initiative could breathe new life into the whole concept.''

He said Hambros would have to clarify the exact nature

of private sector involvement, particularly the risk-sharing

arrangements, and said the Government should give a definite timescale

for the upgrading work.

* #150m of leasing cash announced for British Rail in the last autumn

statement could go to the west coast main line, or save the jobs of 1000

workers in York.

The fate of the Networker express, a 100mph commuter train built by

ABB Transportation, depends on a Government decision expected shortly.

If no cash is available, ABB's York works will probably close with the

loss of 1100 jobs.

''The survival of York depends on this train,'' said Mr Bo Sodersten,

ABB's chief executive, at the launch of the new train yesterday at

London's Waterloo station.

Network SouthEast hopes to use 40 of the trains on its great northern

and south-eastern division commuter routes, including Huntingdon station

in John Major's constituency.

BR will shortly make its recommendation on where the cash should go,

but the decision will rest with the Government.

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