The Channel Tunnel case exemplifies both the present tendency towards a greater involvement of the private sector in the delivery of public infrastructures, and the new possibilities for funding that are a result of the internationalisation of finance markets and banking activities. But it shows also the limits of this change. As a private venture, the Channel Tunnel is heavily dependent on a series of public-sector decisions which have had a great influence on its funding. The profitability of the investment is dependent upon huge, public investments in which spending on the Channel Tunnel is only a small part. The finance had to be helped by various political interventions which make the possibility of a nonguaranty commitment for both the French and the UK government doubtful. On the other hand, the banks proved unable to secure a tight control on the costs, which will have almost doubled when the Tunnel is in operation. The division between the governments and the concessionaires makes unclear the division of responsibilities with regard to the contractors; the division between the concessionaires and the contractors makes it unclear where government responsibility lies for the work.
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