Getlink

Foundation and early activity

Getlink's origins can be traced to the formation of Groupe Eurotunnel on 13 August 1986; it was established in accordance with the Concession Agreement of 1986 between the governments of France and the United Kingdom with the goal of financing, building and operation of a tunnel between England and France. Groupe Eurotunnel awarded a contract for the tunnel's construction to the bi-national project organisation TransManche Link (TML). Furthermore, the company employed Maître d'Œuvre to act as a supervisory engineering body under the terms of the concession that monitored and reported on the project.

While TML designed and built the tunnel, financing was handled by Groupe Eurotunnel; however, the British and French governments controlled final engineering and safety decisions, later formalised through the Channel Tunnel Safety Authority. The British and French governments gave Eurotunnel a 55-year operating concession, originally running from 1987; this was extended by 10 years to 65 years in 1993. Private funding for such a complex infrastructure project was of unprecedented scale. An initial equity of £45 million was raised, then increased by £206 million private institutional placement, £770 million was raised in a public share offer that included press and television advertisements, a syndicated bank loan and letter of credit arranged £5 billion. The final cost for the tunnel's construction came to around £9.5 billion, roughly double TML's original estimate of £4.7 billion. This overrun has been attributed, in part, as a response to enhanced safety, security, and environmental demands. Financing costs were 140% higher than forecast.

Construction of the tunnel took place between 1988 and 1994; at the peak of construction activity, roughly 15,000 people were employed while in excess of £3 million was being expended each day. On 6 May 1994, the completed tunnel was officially opened by Queen Elizabeth II and President François Mitterrand; regular services commenced later that same month. In its first year of operation, Groupe Eurotunnel lost £925 million, which was attributed to disappointing revenue from both passengers and freight traffic, as well as heavy interest charges on its £8 billion of debt. The poor fiscal performance can also be partially attributed to the phased opening of the tunnel; various services awaited approval from the Channel Tunnel Safety Authority, some of which did not receive permission to commence until over a year after the tunnel's official opening date.

On 10 July 1997, a financial restructuring plan was approved by Groupe Eurotunnel's shareholders. On 19 December, both the British and French governments officially agreed to extend its concession to 2086. On 7 April 1998, the financial restructuring process was officially completed. On 30 December 1999, as required by the Concession Agreement, Groupe Eurotunnel presented a road tunnel project to the British and French governments.

2000s