HC Deb 21 January 1999 vol 323 cc566-7W
Mr. Jenkins

To ask the Secretary of State for the Environment, Transport and the Regions what are the(a) costs to date and (b) projected costs to the public purse of work associated with the Birmingham Northern Relief Road, including (i) land purchase, (ii) legal costs and (iii) policing costs; and what contribution to these costs will be made by Midland Expressway Ltd. [66414]

Ms Glenda Jackson

[holding answer 20 January 1999]: Under the Concession Agreement with Midland Expressway Limited (MEL) the costs and risks of constructing the Birmingham Northern Relief Road (BNRR) and its link roads fall to MEL, though certain non-works costs involved in promoting a private finance scheme fall to the Government.

The total cost to date of selecting the private sector promoter, negotiating the Concession Agreement and contributing to the statutory Order-making process is estimated at £9.8 million, of which £1 million is attributable to legal advice. Land acquisition and management costs are recoverable from the concessionaire. Policing costs are a matter for the Police Authority and the Home Office.

Projected costs to the public purse associated with the BNRR include a contribution towards the reconstruction of the existing M42 near Water Orton to enable its use by BNRR traffic. Under the concession agreement the major part of the cost of this work is to be met by MEL, but the Department is to contribute a share currently estimated at £20 million. This takes into account that much of the traffic on that section will not use the BNRR.

Further costs to the public purse could result from any changes imposed by the Department to the requirements of the concession agreement, for example, changes reflecting revised engineering standards. Any imposed changes which involve extra costs to the Concessionaire have to be paid for by the Secretary of State. The present estimate of the agreed changes is a maximum of £1.5 million.

In addition to these costs, about £11.4 million in the period until June 1991 was spent on the earlier proposals for a publicly financed Birmingham Northern Relief Road.