The Crossrail project received a major boost as Transport for London (TfL) announced that it has agreed a £1 billion loan with the European Investment Bank (EIB) to finance part of their contribution to Europe's largest construction project.

For the EIB to agree to the loan facility provides international recognition of Crossrail's importance and is a further milestone in the delivery of the project.

The Mayor of London, Boris Johnson, said: "Our good friends at the EIB have provided us with a billion more reasons to proceed with the unstoppable force that is Crossrail. It is one of the largest loans ever secured for a transport project and I am especially pleased to have this backing for our drive to provide London with the facilities required to keep the capital one of the world's leading cities."

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When Crossrail opens in 2017 its high capacity and high frequency trains will increase London's rail capacity by 10%. Crossrail will connect the key business districts of the West End, City and Docklands with the outer suburbs and relieve congestion on other lines. The project will employ 14,000 people at its peak and support 7,000 further jobs linked to the project, providing a crucial boost to London and the UK's economy.

The first construction work for Crossrail began on 15 May at Canary Wharf. Demolition works are continuing at Tottenham Court Road to enable a major redevelopment of the station and tunnel boring machines will be launched in 2011. The major Programme Partner and Project Delivery Partner contracts that will oversee the delivery of Crossrail were awarded earlier this year and more than half the design contracts have now been let.

(CD/GK)