EUROTUNNEL has won a legal challenge that could entitle it to recover as much as £35million in compensation for losses suffered because of the Sangatte refugee camp near Calais.

The Channel Tunnel operator has had its claim that the governments of Britain and France failed to do enough to allow it to continue to operate safely upheld by a European court.

The Permanent Court of Arbitration in the Hague ruled the two governments failed to ensure normal conditions of order and public safety around Calais.

A tribunal will now set a timetable for deciding how much compensation is due.

The Red Cross camp, close to the Calais terminal, was closed in 2002 but while open had been used as base for illegal immigrants trying to reach the United Kingdom. Channel tunnel trains were regularly targeted by immigrants desperate to reach the UK.

In 2004, Eurotunnel estimated that it had spent £17m on extra security and lost £13m of revenue from delays and cancellations.

A company spokesman said Eurotunnel was “pleased” by the outcome of its legal challenge would now be asking the two governments to make formal offers of compensation.

A Home Office spokesman said: “We are disappointed with the result of this case and are currently studying the detail of the determination.

"Intrusions of illegal migrants into the terminal at Coquelles dramatically reduced following the closure of the migrant centre at Sangatte in 2002 and the introduction of UK border controls at French ports.”