Study of HS1 Escrow Arrangements

ORR is currently undertaking a periodic review of HS1 Ltd (PR19), which determines the level of charges that the company can levy for operations, maintenance and renewals. A key component of our determination requires us to set the quantum of funding required for future renewals expenditure (that is, how much should be deposited in the Escrow account). This requires us to take into account assumptions on many factors, including interest rates and the profile of the required renewal spend over the life of the concession. While the mechanism for the funding of renewals is constrained by the contractual arrangements set out in the HS1 Concession Agreement, it is important to us that the proce…

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