§ Mr. Roy HughesTo ask the Secretary of State for Transport what impact the decision to cease the upgrading of the Al south of Alconbury and north of Peterborough will have on the concession awarded for the upgrading by DBFO—design, build, finance and operate—of the Alconbury to Peterborough section; and what representations he has received from the concessionaires on the decision. [8367]
§ Mr. WattsI have asked the chief executive of the Highways Agency to write to the hon. Member.
Letter from Lawrie Haynes to Mr. Roy Hughes, dated 11 December 1996:
The Secretary of State for Transport has asked me to reply to your recent question about changes made to the Government's trunk road programme following the Chancellor's Autumn Statement. You ask what implication there might be for the A1(M) Alconbury to Peterborough Design, Build, Finance and Operate (DBFO) scheme in the light of the decision taken to withdraw other A1(M) schemes from the programme.The A1(M) Alconbury to Peterborough DBFO concession has been awarded as part of the Government's Private Finance Initiative (PFI). One of the key objectives for any contract awarded under the PH initiative is to achieve the optimal transfer of risk to the private sector in relation to the design, building, financing and operation of roads. For the tenderer, this means that he makes his own assessment of future traffic and accepts any associated risks. For the Department, this means that concessions will only proceed where the level of risk transferred is acceptable to the Government and represents good value for money. Any possible implications, therefore, for the A1(M) Alconbury to Peterborough DBFO concession following changes to the trunk road programme, are entirely a matter for the DBFO Company.To date, no approach has been received from the DBFO Company on this matter.