LONDON and Continental Railways (LCR) is buying the first section of the Channel Tunnel Rail Link (CTRL) through Kent for £375 million.

The deal with Railtrack UK, the holding company for Railtrack Group's interests in the high-speed line, was concluded after weeks of intensive talks.

It should resolve the future of CTRL ownership after months of uncertainty caused by the demise of Railtrack Group.

The 46-mile section between the Channel Tunnel and Fawkham Junction, is now 87 per cent complete and is due to open on September 28 next year.

Section 2, between Ebbsfleet and St Pancras via Stratford in East London is already under construction. The full line, costing £5.2 billion, is expected to open in 2007.

Railtrack was legally obliged to purchase Section 1 of the CTRL on its completion at a price reflecting the actual cost of construction.

This liability was carried at a value of £1,095 million in Railtrack UK's annual accounts for the financial year ending March 31, 2002.

LCR's purchase includes the right to operate the CTRL and the concession to manage St Pancras Station.

It is selling this right for £80 million to Network Rail, the successor to Railtrack and operator of the railway infrastructure.

Rob Holden, LCR chief executive, said: "The transaction re-establishes the construction of the CTRL infrastructure under unified management and ownership. This should allow full transfer of expertise and experience between the two sections and avoid the duplication of work and roles."

He added: "To ensure a seamless interface between CTRL and the domestic network, it also makes sense for there to be only one operator of CTRL and for that operator to be the domestic network operator."

The deal depends on approval from Railtrack shareholders and Brussels. Both are likely before the end of September.