A TWO-YEAR extension to the east coast main line rail franchise will involve private sector investment of £100m, it has been revealed.

GNER, the existing franchise holder, and its partners will foot the bill for improvements to train services and rolling stock, stations, passenger information, facilities for the disabled and performance, compensation and customer satisfaction regimes.

Station improvements worth £10m will include, by the end of 2003, refurbished subways at Darlington and York. GNER is contributing at least £16m to main line infrastructure work to improve performance and capacity.

More than £50m is being committed by GNER to rolling stock, including the lease of two additional train sets to replace stock lost in the Selby disaster, and refurbishment of all passenger coaches.

The investment package also includes £20m to improve the reliability of the 125 mph Class 91 electric locomotives.

GNER was originally granted a seven-year franchise in 1996 and agreement struck with the Strategic Rail Authority extends it by two years to April 2005.

Mr Richard Bowker, chairman of the SRA, said the improvements agreed with GNER needed no extra subsidy and would make a real difference to passengers along the whole east coast route.

He confirmed that the SRA was leading the development of a major upgrade of the route in stages over the next eight years to increase capacity by up to 80pc. Funding of £17.5m towards the project was announced last September.