Norfolk County Council has called a special full council meeting for September 2 to close a funding gap ahead of work starting on Norwich’s Northern Distributor Road.
The Leader of the Council, Cllr George Nobbs, and the Chairman of the Environment, Development and Transport Committee, Cllr Toby Coke, will be proposing that the council contributes £15m to cover half the £29.9m shortfall, and is calling on the Government to cover the remainder.
Until now, the NDR cost estimates – developed with the main contractors Birse Civils (now Balfour Beatty Civils) – have been based on 2013 prices.
This has now risen by £29.9m, with construction cost inflation and unavoidable design changes – largely higher standard environmental protection measures – accounting for most of the increase. The NDR is now set to cost a total of £178.45m and Norfolk County Council is pressing the Government to meet half the £29.9million extra cost.
The rise in price is largely due to delays as central government reviewed all major infrastructure projects in the early years of the coalition government. To secure Development Consent, higherand more costly standardsare nowrequired in the design of drainage systems, wildlife protection, landscaping and environmental measures. These include an additional £1million to be spent on bat barns and crossings.
Even at the higher cost the NDR will be very good value for money when assessed on national criteria.
Cllr George Nobbs, Leader of Norfolk County Council, said: “This is a vital infrastructure project for Norwich and Norfolk. It brings real jobs and economic growth, with travel and transport improvement that will benefit thousands of people every day, and a £1bn-plus boost to the Norfolk and national economy.
“It’s hugely disappointing that delays beyond our controlhave caused increased costs and I think it’s right that we press Government to do what’s right by Norfolk and meet us half way. “Norfolk has been particularly disadvantaged by recent Government decisions, so I very much hope that our proposal to meet the Government half way and to put up a further £15m ourselves will be met by an equally generous contribution from them. After all, this is one of the best value for money schemes in the country.”
Cllr Toby Coke, Chairman of the Environment, Development and Transport Committee, said: “I understand why George Osborne pressed the pause button on national infrastructure projects when the coalition government took over in 2010, and also why he was subsequently happy to give the NDR approval. It is good value for the national taxpayer and vital for the prosperity of Norwich and Norfolk.
“The Government wants to deliver infrastructure improvements, and so do we. Splitting the extra cost is a way in which we can ensure that this shovel-ready project really does start on the ground before the end of October.”
An Extraordinary Council Meeting has been called for Wednesday 2 September to present Members with a report on the final target costs for the NDR, and to consider how the NDR budget gap should be handled.
Norfolk County Council obtained Development Consent in June for a 20km dual carriageway to run from the A47 at Postwick to the A1067 Fakenham Road at Attlebridge. The County Council has already submitted a request to the Department for Transport for an additional contribution from national funds. The DfT has allocated £67.5m for the Postwick to A140 (Norwich Airport) stretch, on top of £19m that has already been released for the Postwick Hub A47 junction improvement.
The £29.9m overall increase on previous estimates has been partially offset by a £5m contingency and smaller savings elsewhere and includes:
Total construction cost increase £26.4m(from £77.8m to£104.2m). These include construction inflation, higher environmental specifications andadditions to the designresulting from the Development Approval process.
Land costs up £1m(from £16.2m to £17.2m), reflecting increased land values.
A £1.95m increase in costs associated with obtaining development consent,supervision, and contingency allowances.
Even at £178.45m the NDR has been assessed, using Department for Transport criteria, as achieving a ‘very high’ 6.5 cost-benefit score – giving very good value for money.
As well as offering major travel and transport improvements and over £1bn in economic benefits, the NDR is the single most important infrastructure improvement supporting properly planned growth in the Greater Norwich area, as set out in the Joint Core Strategy and City Deal.
It is a key component in the Norwich Area Transport Strategy, opening up road space for other ‘Transport for Norwich’ schemes drawn from NATS.
The case for the NDR came under detailed independent scrutiny last year (2014) through the examination process, but the project has also had to survive the economic downturn and changes in Government. Although it came through each review successfully, this was at a significant cost in time and now money.
The NDR was originally allocated £67.5m, for the Postwick to A140 stretch (excluding Postwick junction) in 2010. This allocation was confirmed in December 2011 (as part of a joint NDR/Postwick allocation of £86.5m). The County Council has worked hard with Birse Civils (appointed in 2009 – now Balfour Beatty Civils) to keep costs down.
