Debt relief grant helps RFF finances

International Railway Journal, Dec, 2004

THE French railway infrastructure owner, Reseau Ferr6 de France (RFF) reported an increase in investment to 1.099 billion [pounds sterling] in the first half of this year compared with 852 million [euro] in the first half of 2003. This year represents the peak year for investment in TGV Est-Europeenne, and in the first half RFF pumped 452 million [euro] into the project, 50% more than the same period last year.

The overall financial result was a deficit of 332.2 million [euro] after taking into account a debt relief grant of 400 million [euro]. This compared with a deficit of 682 million [euro] in the first half of 2003. The slight overall deterioration was due mainly to increases in financial charges. Income from access and associated fees increased by 16.6% from 921.7 million [euro] in the first haft of 2003 to 1.074 billion [euro] in the first half of this year. Against this, the contribution to infrastructure charges shrank from 692 million [euro] in the first half of last year to 555 million [euro] to the end of June this year.

RFF's debt reached 28.7 billion [euro], including 2.6 billion [euro] of short-term debt at the end of June. This compares with a total of 28.5 billion [euro] at the end of 2003, 27.8 billion [euro] at the end of 2002, and 28.4 billion [euro] at the end of 2001.