In April 2004, the Executive took on full funding responsibility for the rail franchise, which currently costs around £210 million per year in subsidy.
The cost of the franchise over the next seven years will be approximately £1.9 billion. Annual payments are linked to performance so they will vary.
The new rail franchise contract was awarded to FirstGroup on 20 August 2004 and First ScotRail started operating services on 17 October 2004. The franchise will run for seven years with the option of a three year extension.
First ScotRail is also committed to delivering a £40 million programme of improvements for rail passengers across Scotland, £17 million of which is due to be spent during the first 18 months of the franchise.
To find out more about the Rail Franchise, current rail projects and other topics relating to Scotland's rail network see www.transportscotland.gov.uk