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The Board of Go-Ahead announces that GoVia, Go-Ahead's 65% owned subsidiary, has reached agreement in principle with the Strategic Rail Authority (the 'SRA') on a proposed new seven year franchise agreement for South Central terminating in December 2009. The current franchise is due to expire in May 2003. This extension follows the SRA's decision that, despite lengthy and detailed negotiations, the originally proposed 20 year franchise could not satisfy its requirements for value for money and affordability.
GoVia will no longer be required to lead the infrastructure projects associated with the 20 year franchise proposal, significantly reducing the risks associated with the franchise.
The SRA has also agreed with GoVia that it is the SRA's firm intention to negotiate a new franchise for Thameslink to 2009. Both franchise extensions recognise the current uncertainties surrounding Thameslink 2000 and the need for South Central and Thameslink to work closely together with the SRA in delivering this project. The two franchises will provide for termination up to two years earlier at SRA discretion.
Based on the current terms of the agreement in principle, the Board of Go-Ahead is confident that there will be no material change to the financial prospects of the Group.
Go-Ahead is currently in separate negotiations with the SRA for a two year extension to the Thames Trains franchise, again currently due to expire in April 2004.
The Board of Go-Ahead will update shareholders once agreement on the detailed terms of the franchises has been reached.
For further enquiries please call:
The Go-Ahead Group plc 0191 232 3123 Christopher Moyes, Group Deputy Chief Executive Ian Butcher, Group Finance Director
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