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2a - Tranche 2 project fact sheets

South Midlands Network

The project road comprises sections of the trunk road network in the Counties of Leicestershire, Northamptonshire and Bedfordshire, and to a lesser extent Buckinghamshire and Oxfordshire. Centred on the A6 and A43 trunk routes where they intersect at Kettering, it also includes sections of the A421 and A428.

South Midlands Network

A6 trunk routes
  • A6 Great Glen Bypass
  • A6 Rushden and Higham Ferrers Bypass
  • A6 Rothwell and Desborough Bypass
  • A6 Clapham Bypass

The section of the strategic north-south A6 trunk road included in this project extends from the southern outskirts of Leicester to the north side of Luton. Whilst principally rural in character, this section of the A6 passes through a number of towns and villages.

A43 trunk routes
  • A43 Silverstone Bypass
  • A43 Whitfield Turn to Brackley Hatch Dualling
  • A43/M40 to B4301 Improvement

The A43 trunk route forms an important north-south connection between the A1 to the south-west of Stamford and Junction 10 on the M40 to the north of Oxford. The route is generally rural in character, with discontinuities at the two major urban areas, Kettering and Northampton.

A428 Norse Road Link

The A428 is an east-west route linking Coventry in the West Midlands to Cambridge and the east ports beyond via the A14. The A421 is a rural primary route, which currently extends from Bicester to the A6 south of Bedford. The Bedford Southern Bypass, which has now been constructed, will provide a link between the existing A421 to the south of Bedford and the A428 to the east.

The A428 Norse Road Link scheme was withdrawn following the roads review of July 1998 and the remaining schemes (A43 &A6 trunk routes) were conventionally procured under the TPI.

Length of project road: 251km
Estimated Construction Costs: £116 million
Date of ITT issue: 3rd March 1997
Date of suspension: 19th June 1997
Type of road: Dual 2 carriageway

Highways Agency advisers

Technical: Halcrow Group Ltd
Legal: Denton Hall
Financial: Hambros/Pricewaterhouse
Design Agent: Bingham Cotterell, Northamptonshire C.C., Peter Fraenkel & Ptnrs, Thorburn Colquhoun
Cumbria to Bradford

Cumbria to Bradford

The Cumbria to Bradford project road runs from the A590/A592 junction at Newby Bridge via the A590, A65, A629 and A650 to the eastern terminal point of the proposed Bingley Relief Road. In addition to its strategic function as a trans Pennine route, the project road serves as a connecting route between intermediate centres of population. It also acts as a recreational route for tourism interests associated with the Lake District and Yorkshire Dales National Parks and Bowland Area of Outstanding Natural Beauty. This scheme was part of the Government's accelerated roads review and was subsequently suspended. The conclusion of the review was such that the DBFO tender period for this scheme was terminated.

The component schemes will be undertaken as follows:

  • A590 High & Low Newton Bypass - This Scheme was added to the Governments Targeted Programme of Improvements (TPI) on 29 October 2003 and is planned to start construction in 2005-06.
  • A65 Hellfield and Long Preston Bypass - This road is being detrunked. The local highway authority will decide whether or not the scheme will proceed.
  • A65 Gargrave Bypass - This road is being detrunked. The local highway authority will decide whether or not the scheme will proceed.
  • A629 Skipton - Kildwick Improvement - withdrawn.
  • A650 Bingley Relief Road - This scheme was completed under the TPI (conventional procurement).
Length of project road: 106km
Estimated Construction Costs: £104 million
Date of ITT issue: 4th February 1997
Date of suspension: 19th June 1997
Type of road: Dual 2 carriageway
Contingent scheme: Type A (A650)
Tenderers: Road Link, Connect, Autolink, The Trafalgar House/ Autostrade Group
Project manager: Highways Agency

Highways Agency advisers

Technical: Halcrow Group Ltd
Legal: Denton Hall
Financial: Hambros/Pricewaterhouse
Design agent: Babtie Group Ltd
Hyder
Weald & Downland
Weald & Downland

The project road comprises sections of three trunk road routes, the A21 London to Hastings trunk road, the A259/A27 South Coast trunk road and the A26 trunk road between the A27 and the port of Newhaven. The A21 trunk road runs southwards from the A25 at Sevenoakes to the outskirts of Hastings. The A259/A27 trunk road from Hastings to Brighton is part of the Folkestone to Honiton South Coast Trunk Road. It is the only strategic east-west route across England south of the M20, M25 and M4 corridor and it links the major towns of Folkestone, Hastings, Eastbourne, Lewes, Brighton, Worthing, Portsmouth, Southampton and Bournemouth. The A26 trunk road provides access to the port of Newhaven from the A27 at Beddingham. This scheme was part of the Government's accelerated roads review and was subsequently suspended. The conclusion of the review was such that the DBFO tender period for this scheme was terminated.

The component schemes will be undertaken as follows:

  • A21 Tonbridge Bypass to Pembury Bypass Dualling - scheme to be progressed subject to regional priorities.
  • A21 Lamberhurst Bypass - Under construction as part of the TPI (conventional procurement).
  • A27 Polegate Bypass - Opened to traffic in June 2002 under the TPI (conventional procurement).
  • A259 Pevensey to Bexhill Improvement - This scheme was cancelled by the Minister in July 2001.
  • A259 Bexhill & Hastings Western Bypass - This scheme was cancelled by the Minister in July 2001.
  • A259 Hastings Eastern Bypass - This scheme was cancelled by the Minister in July 2001
Length of project road: 117km
Estimated Construction Costs: £142 million
Date of ITT issue: 6th January 1997
Date of suspension: 19th June 1997
Type of road: 2/3 lane dual carriageway
Contingent scheme: Types A & B (A259)
Tenderers: Road Management Group, UK Highways, Express Route, The Modern Highways Group
Project manager: Highways Agency

Highways Agency advisers

Technical: Halcrow Group Ltd
Legal: Denton Hall
Financial: Hambros/Pricewaterhouse
Design agent: W S Atkins
Kent C.C
Carl Bro Group
Mott MacDonald
A40 West London Approach

The A40 is an important strategic radial route running in a generally east/west direction from inside the M25 to London's West End. At its western end it connects with the M40 motorway, Junction 1 while at its eastern end it connects with central London via the A501 and M41. The project road is one of the main arterial routes into central London. Starting in Buckinghamshire it passes through the Boroughs of Hillingdon, Ealing, Hammersmith and Fulham, the Royal Boroughs of Kensington & Chelsea and the City of Westminster. It is extensively used by commuters, tourists and commercial traffic from and to the Midlands.

The A40 West London Approach DBFO project, together with its two constituent schemes was cancelled in July 1997 as it was considered likely that this improvement scheme would encourage car commuting.

Length of project road: 25km
Estimated Construction Costs: £75 million
Type of road: Dual 2/3 carriageway
Project manager: Highways Agency

Highways Agency advisers

Technical: Halcrow Group Ltd
Legal: Denton Hall
Financial: Hambros/Pricewaterhouse
Design agent: Sir Frederick Snow
Howard Humphreys
A36 Wessex Link

The Wessex Link DBFO Project was also cancelled in July 1997. The result of the Roads Review in respect of the relevant schemes is as follows:

  • A36 Salisbury Bypass - cancelled July 1997
  • A36 Codford - Heytesbury Improvement - This road is being detrunked and was proposed by the local highway authority as a Local Transport Plan major bid but was turned down by Government Office.
  • A303 Sparkford - Ilchester Improvement - scheme to be progressed subject to regional priorities.
  • A303 Wylye - Stockton Wood Improvement - scheme to be progressed subject to regional priorities.
  • A303 Chicklade Bottom - Mere Improvement - scheme to be progressed subject to regional priorities.
  • A303 Ilminster Bypass Improvement - scheme to be progressed subject to regional priorities.

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2b - A13 Thames Gateway DBFO project fact sheets

A13 Thames Gateway DBFO project
  1. The A13 Thames Gateway DBFO project, approved as part of the Accelerated Review of the trunk road programme conducted in summer 1997, provides a vital link in the transport infrastructure to assist regeneration in East London, improving east-west access to Docklands, the Lower Lea Valley and other parts of East London.
  2. The route is of major importance to industry located along the A13 and provides heavy goods vehicle links from east London and Docklands to the M25 and Tilbury Docks. The project road ceases at the Greater London Authority (GLA) boundary at Wennington.
  3. Following a pre-qualification exercise, four bidders were selected and tenders invited in August 1998. Tenders were returned in March 1999 and bidders shortlisted in August 1999. A provisional preferred bidder was selected in December 1999.
  4. The contract was awarded to RMS (A13) plc by the Highways Agency, with contract signature on 12 April 2000 and a commencement date of 11 July 2000.
  5. The A13 DBFO contract was novated from the Highways Agency to Transport for London under the terms of the GLA Act on 3 July 2000.
Details of the project
  1. During the 30-year contract RMS is required to operate and maintain:
    • the existing A13 from Butcher Row in the West to Heathway in the East;
    • the new A13 bypass from Heathway to Wennington which opened in December 1999; and
    • the Limehouse Link Tunnel, Aspen Way and the East India Dock Tunnel.
  2. The DBFO company is also required to construct:
    • the A13 Ironbridge to Canning Town Improvement, consisting of widening and an additional flyover (estimated cost £43.7 million and substantially completed in October 2004);
    • the A13/A117 Woolwich Manor Way Improvement, consisting of replacing an existing flyover and providing a dual three lane carriageway road (estimated cost £39.6 million, substantially completed in August 2004);
    • the A13 Movers Lane Improvement, consisting of a new dual three lane underpass (estimated cost £26 million, substantially completed in August 2003); and
    • the A13/A112 Prince Regent Lane, which consists of an underpass, slip roads and a new junction (estimated cost £36.5 million, substantially completed in August 2004).
  3. The core requirements of the DBFO contract were also strengthened to include:
    • providing monitoring equipment to improve accident response times. This equipment can be used for traffic management purposes;
    • installing variable message signs that will be used to warn drivers of congestion ahead and to advise of alternative routes and modes of transport available; and
    • five-year management plans to incentivise the private sector to develop solutions that support Government policy. Examples include environmental improvements and ideas for integrating different modes of transport such as park and ride sites etc.
    • The expected completion date for all the construction works, which includes the communications systems and all civils works associated with the improvement schemes, is currently May 2005.
A13 payment mechanism
  1. An alternative payment mechanism was devised for the A13 DBFO, designed to incentivise the private sector to deliver a service in tune with the government's approach to integrated transport (i.e. the Roads Review five key criteria of integration, economy, environment, safety and accessibility). This payment mechanism moves away from the all-vehicle shadow-toll payment mechanism used on previous DBFO contracts, replacing them with a combination of:
    • Availability - Accounting for approximately 70 per cent of the DBFO company's income, payments are linked to road availability which, in turn, incentivises them to maximise the time that the road is available to road users, particularly during peak hours. Financial incentives include keeping bus lanes open and available for use.
    • Separate footway and cycle way availability payments - The needs of the non-motorised user are also recognised by linking payments to the DBFO company's performance in keeping footways and cycle ways available to pedestrians and cyclists.
    • HGV/bus shadow tolls - Long-vehicle volume-based payments encourage the DBFO company to efficiently manage public transport and commercial goods vehicle traffic, while providing no incentive to increase car usage.
    • Safety payments - Safety payments are designed to encourage the DBFO company to reduce the number of accidents.

In addition, the core requirements for the A13 contract have been amended to include provision of monitoring equipment to improve accident response times and variable message signs to inform road users of congestion, delays and public transport alternatives.

A13 Thames Gateway
A13 Thames Gateway

The following facts were correct as of the date of award for this project:

The A13 trunk road is a strategic East London/Thameside radial route. At its western end it connects with the City of London while its eastern end includes the new A13 Bypass to Wennington. The route is of major importance to industry located along the A13 and provides commercial vehicle links from East London and Docklands to the East Coast. These schemes are key to improving east-west access to Docklands, the Lower Lea Valley and other parts of East London, north-south local access and to supporting regeneration in a major part of the Thames Gateway. The Project will allow full use of the East India Dock Tunnel. The A13 passes through the London Boroughs of Tower Hamlets, Newham, Barking and Dagenham and Havering. The schemes included in this project are:

  • A13 Ironbridge to Canning Town Improvement;
  • A13/A117 Woolwich Manor Way Junction Improvement;
  • A13 Movers Lane Junction Improvement;
  • A13/A112 Prince Regent Lane Junction Improvement.
Length of project road: 20.5km
Estimated project value: £146 million
Date of ITT issue: 27 August 1986
Date of tender return: 15 March 1999
Contract signature: 12 April 2000
Commencement date: 11 July 2000
Novation to TfL: 3 July 2000
Tenderers: Connect, Tarmac/ Laing, Road Management Ltd, The Kvaerner/ Nutall/ Autostrade Group

Highways Agency Advisers

Technical: Halcrow Group Limited
Legal: Initially Denton Hall, now TfL
Financial: Initially KPMG, now TfL
Design agent: HyderMott MacDonaldGibb
Type of road: Single/dual carriageway

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2c - NAO press notice on the Scottish Office A74(M)/M74 DBFO Project

The Private Finance Initiative: The Contract to Complete and Operate the A74(M)/M74 in Scotland

HC 356 1998/99
9 April 1999
ISBN: 0102652996
Price: £10.15

Sir John Bourn, head of the National Audit Office, reported to Parliament today that the Scottish Office had managed an effective competition for the £214 million contract to complete the upgrading of the *A74(M)/M74 in Scotland to three-lane motorway and to operate the road until 2027. The private sector partnership with Autolink Concessionaires (M6) plc is expected to bring benefits which offset the higher cost of financing the project privately.

These benefits include construction of the road in around 22 months, compared with an estimated 36 months for a conventionally financed project. Early delivery of the road will increase the cost of the contract for the Scottish Office, but these extra costs are expected to be matched by the additional benefits to road users resulting from advanced completion.

The National Audit Office found that:

  • within the Scottish Office specification for a three-lane motorway, bidders had scope for innovation;
  • as in the first four PFI roads in England, the use of shadow tolls as the payment mechanism for the road creates a risk for Autolink - linked to the volume of traffic - which it cannot manage and which, therefore, is likely to have increased the cost of the contract. If a different payment mechanism could be developed it might in future produce a better deal;
  • the Scottish Office maintained notably good communication and feedback with bidders, while ensuring keen competition throughout the process. The Scottish Office included a second round of bidding which they had not originally expected to need. This maintained competitive tension, thus securing a keener price, but also resulted in additional costs both for the Scottish Office and for bidders;
  • the successful bidder, Autolink, arranged finance for the deal through a competitive process and used a novel funding structure involving a bond issue to gain access to global capital markets. The competitive way in which the Department procured the road gives assurance that the benefits Autolink obtained from this innovation fed through in lower shadow tolls; and
  • the Scottish Office's assessment of the value for money of the road was thorough. The net benefit may be somewhat less than the £17 million calculated by the Scottish Office, but Autolink's price can be expected to remain value for money.

The report recommends:

  • that in future roads contracts, departments should think about how to allow the maximum possible scope for innovation on the part of the private sector;
  • that departments continue to look at alternatives to shadow tolls for future privately operated roads;
  • that where competitive tension can only be maintained by including a second stage of bidding involving parallel negotiations with two bidders, then departments should consider the case for reimbursing some or all of the losing bidder's costs if unconditional bids are sought from both;
  • that departments evaluate carefully the additional costs and benefits that would arise from having a service provided significantly ahead of schedule; and
  • that departments should as in this case, invite an independent contractor to participate in the development of the public sector comparator.

Notes for Editors

*In April 1997, the Scottish Office signed a contract with Autolink Concessionaires (M6) plc to upgrade the existing 28 kilometre section of the A74 between Paddy's Rickle Bridge and Cleuchbrae in Scotland to motorway standard, and to operate and maintain the 92 kilometre length of the M74 between Millbank and the border. In return, the Scottish Office will make payments to Autolink based on the volume of traffic using the road, subject to a maximum in each year - so called "shadow tolls".

Press notices and reports are available from the date of publication on the NAO website at www.nao.org.uk. Hard copies can be obtained from The Stationery Office on 0845 702 3474. The Comptroller and Auditor General, Sir John Bourn, is the head of the National Audit Office employing some 750 staff. He and the NAO are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources.

Concerning audit and Scottish devolution, the Scotland Act 1998 provides for the appointment of an Auditor General for Scotland on the nomination of the Scottish Parliament. In due course the Auditor General for Scotland will become responsible for the commissioning of financial and value for money audits across much of the public sector in Scotland, and reporting the results to the Scottish Parliament.

Press Notice 28/99
All enquiries to NAO Press Office:
Tel: + 44 (0) 20 7798 7400

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2d - Welsh Office press notice on the A55 DBFO Project

HYSBYSIAD I'R WASG Y SWYDDFA GYMREIG
PRESS RELEASE WELSH OFFICE

11 January, 1999

PETER HAIN ANNOUNCES CONTRACT FOR DUALLING OF A55 ACROSS ANGLESEY

UK Highways A55 Ltd has been awarded the contract to design, build, finance and operate (DBFO) the A55 extension across Anglesey, Welsh Office Transport Minister Peter Hain announced today.

It is the first roads project solely within Wales to be procured by Private Finance. Work is expected to take about three years and be completed in 2001.

Mr Hain said:

"The importance of this project is reflected in the fact that it was the only scheme exempted from the strategic review of the Welsh trunk road programme,

"The new road will bring a better quality of life to people living and working along the existing A5 on Anglesey and will increase economic prosperity in North West Wales. In particular it will aid the economic regeneration of the island as a whole and Holyhead in particular. It will improve both road safety across Anglesey and communications with the rest of Wales and beyond into Europe."

The project will be:

  • The construction, operation and maintenance of about 32km of new dual carriageway from the western end of Llanfairpwllgwyngyll Bypass to the town and port of Holyhead;
  • The operation and maintenance of about 9km of existing A5 trunk road from its junction with the A55 trunk road at Llandega, south of Bangor, to the western end of the Llanfairpwllgwyngyll bypass, including Britannia Bridge; and
  • The operation and maintenance of about 4km of existing roads which includes the A487 trunk road northwards from its junction with the A5 at Vaynol; the A4080 trunk road over the Menai Bridge linking back to the Llanfairpwllgwyngyll Bypass

The additional lengths of existing trunk road have been included in the DBFO project to improve traffic management at the approaches to Britannia and Menai Bridges and allow greater operational flexibility during closures of either bridge for maintenance or in extreme weather.

Notes

UK Highways A55 Ltd is a consortium made up of Laing, Tarmac and Hyder.

The concession period will be for 30 years during which time the contractor will design the new scheme, fund its construction, manage and maintain the network of the roads within the project. In return the Government will pay shadow tolls on a formula based upon the number of vehicles using the road and lane availability. After this time responsibility for the operation and maintenance will revert to the Government.

The concession includes the design and construction of around £100m of new roads and the operation and maintenance of the A5/A55 trunk road between Llandegai and Holyhead.