Editing Channel Tunnel (section)

=== Cost ===
The tunnel is a build-own-operate-transfer ([[BOOT]]) project with a concession.<ref name="Flyvbjerg p. 96/97">Flyvbjerg et al. pp.&nbsp;96–97</ref> TML would design and build the tunnel, but financing was through a separate legal entity, Eurotunnel. Eurotunnel absorbed CTG/F-M and signed a construction contract with TML, but the British and French governments controlled final engineering and safety decisions, now managed by the [[Channel Tunnel Safety Authority]]. The British and French governments gave Eurotunnel a 55-year operating concession (from 1987; extended by 10 years to 65 years in 1993){{sfn|Foreign & Commonwealth Office|1994|p=5}} to repay loans and pay dividends. A Railway Usage Agreement was signed between Eurotunnel, [[British Rail]] and [[SNCF]] guaranteeing future revenue in exchange for the railways obtaining half of the tunnel's capacity.

Private funding for such a complex infrastructure project was of unprecedented scale. Initial equity of £45&nbsp;million was raised by CTG/F-M, increased by £206&nbsp;million private institutional placement, £770&nbsp;million was raised in a public share offer that included press and television advertisements, a syndicated bank loan and [[letter of credit]] arranged £5&nbsp;billion.<ref name="Wilson pp. 14–21"/> Privately financed, the total investment costs at 1985 prices were £2.6&nbsp;billion. At the 1994 completion actual costs were, in 1985 prices, £4.65&nbsp;billion: an 80% [[cost overrun]].<ref name="Flyvbjerg p. 12">Flyvbjerg et al. p. 12</ref> The cost overrun was partly due to enhanced safety, security, and environmental demands.<ref name="Flyvbjerg p. 96/97"/> Financing costs were 140% higher than forecast.<ref name="Flyvbjerg p. 3">Flyvbjerg et al. p. 3</ref>