Agenda item

To consider a report which seeks approval of a funding strategy for the Middlewich Eastern Bypass scheme and to submit a Full Business Case to the Department for Transport.

The Committee considered the report which sought approval of a funding strategy for the Middlewich Eastern Bypass scheme and to submit a Full Business Case to the Department for Transport. It was highlighted that the Middlewich Eastern Bypass scheme would improve the highway network in Middlewich by relieving congestion and road safety concerns in Middlewich town centre, improving journey times on the wider highway network and would enable the full development of Strategic Location LPS 44 (Midpoint 18) in the adopted Local Plan Strategy. The scheme would also support economic growth, employment and housing delivery in the town and the surrounding area.

The Committee welcomed the report and highlighted the positive impact that this scheme would have particularly for Middlewich residents. The Committee thanked officers for the ongoing hard work that had been done to progress the scheme. The Committee queried the level of risk associated with the project. It was highlighted that some level of risk should be accepted and that NEC3 Option C (target cost approach) would be utilised within the contract with the appointed contractor. It was noted that the Council had recent and ongoing successful experience of delivering major projects using this procurement option.

RESOLVED (unanimously):

That the Highways and Transport Committee:

1.    Approve the Draft Full Business Case for the Middlewich Eastern Bypass, annexed to the report.

2.    Authorise the Executive Director – Place in consultation with the Committee Chair to make minor modifications to the Draft Full Business case prior to submission of the Full Business Case to the Department for Transport (DfT).

3.    Approve the submission of the Full Business Case for the Middlewich Eastern Bypass (Appendix 1) to the DfT seeking a grant contribution of £46.80 million towards the total scheme cost.

4.    Subject to approval of the Full Business Case by the DfT, approve the release of the Department for Transport grant funding to the value of £46.80 million for a contribution towards the delivery of the scheme.

5.    Note that the total estimated scheme cost has increased from £92.50 million to £95.74 million.

6.    Recommend that a virement for £3.24 million is considered by the Director for Finance and Customer Services in consultation with the Chair of the Highways and Transport Committee and the Chair of the Finance Sub-Committee, from the Strategic Capital Projects programme, increasing the Council contribution to £24.81 million towards the scheme.

7.    Approve the forward funding and underwriting at risk of the agreed contribution to the scheme from HS2 in accordance with Assurance C6.22 the Phase 2b (Crewe - Manchester) Draft Register of Undertakings and Assurances v1.4

8.    When the HS2 contribution is paid, approve the reimbursement of the Strategic Capital Programme budget with that contribution.

9.    Approve the ongoing forward funding of expenditure on the scheme, including all costs of entering into the construction contract, in advance of Section 106 (S106) developer contributions, and note that this presents financial risks as outlined in the financial implications of the report.

10.Note the authorisation already given by Cabinet on 15 January 2019 to delegate to the Executive Director – Place in consultation with the Finance and Communications Portfolio Holder, exercise powers to undertake all the Page 39 necessary and prudent preparatory site clearance and general construction works in advance of Stage 2 Construction phase before funding approval from DfT.

11.Note the authorisation given by Cabinet on 15 January 2019 to delegate to the Executive Director – Place in consultation with the Finance and Communications Portfolio enter into a two stage Delivery Agreement with the Contractor for the delivery of the MEB via the Scape Framework.