The full cost of the refranchising of the east coast mainline railway will be met by the National Express east coast performance bond.
Should National Express relinquish the franchise prior to the end of its full term, the costs of re-franchising are currently estimated to be £1.2 million.
These costs will be recoverable from a performance bond that will fall due under the current franchise agreement.
Budget cover for the passenger railway is one of several programmes included in section M—Railways of the Department for Transport's Parliamentary Supply Estimates, which can be found at:
http://www.hm-treasury.gov.uk/d/13403_me07_dft_1st.pdf