Transport for London has been granted a £1bn loan with the European Investment Bank to help finance its contribution to Crossrail.

TfL is responsible for £7.7bn of Crossrail’s £15.9bn budget. Almost a third of its contribution will be funded by borrowing linked to future Crossrail fares revenue.

TfL already has two loan agreements with EIB: a £450m loan to finance the East London Line Extension; and a £200 million loan to part-fund the Docklands Light Railway three-car upgrade and the Stratford International Extension.

The first construction work for Crossrail began on 15 May at Canary Wharf and 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.

Crossrail is due to be complete and open to the public in 2017.