A deal worth up to £350m that will help deliver Crossrail on time and on budget has been finalised with the City of London Corporation.

The agreement was announced today by Andrew Adonis, Transport Minister, Boris Johnson, Mayor of London and Sir Michael Snyder of the City of London Corporation.

The Minister and the Mayor also announced the signing of a series of core funding and governance agreements that will underpin the project.

The City of London Corporation has agreed to make a direct contribution of £200m to the Crossrail project. In addition, the City Corporation will seek contributions from businesses of £150m, and has guaranteed £50m of these contributions.

This confirms the City's full support for Crossrail and is the latest in a series of milestones for the project, including the announcement last month of BAA's £230m funding contribution.

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As Europe's largest construction project, the delivery of Crossrail will provide a boost of at least £20 billion to the UK economy as well as generating an extra 30,000 jobs. It will also help secure London's position as a world leading financial centre by delivering a 10% increase to the capital's rail capacity when it opens in 2017.

Transport Minister Andrew Adonis said: "This is a landmark moment in the delivery of Crossrail, and once again signals the commitment of businesses to this vital project. It is a hugely important scheme that will be crucial in keeping London and the rest of the country globally competitive.

"Crossrail will bring 1.5 million people within 60 minutes' commute of London's major financial districts, as well as delivering a much needed boost to rail capacity to and from Heathrow Airport. Its construction and operation will also create thousands of new jobs, at a time when they are much needed."

Today's confirmation of funding and governance agreements means that Cross London Rail Links Ltd (CLRL), the company responsible for the delivery of the project, will now become a wholly owned subsidiary of Transport for London.

This finalises how the project will be governed and continues to build momentum toward the start of main construction works in 2010.

(JM)