29/10/2008 - CNDR update

Work on the Carlisle Northern Development Route is expected to be delayed by three months because of the global financial situation, Cumbria County Council's Cabinet will hear next week.

The Final Business Case for the project has been favourably received by the Department for Transport but the report will explain that, whilst state support to Franco-Belgian bank Dexia late last month provided some stability, uncertainty in world financial markets remains and negotiations regarding alternative funding arrangements with a club of banks, including Dexia, is now underway. Interest in the project remains strong but most banks are not open for new business until the new year.

Connect CNDR remain the preferred bidder for the project and Cumbria County Council will continue to liaise closely with them so they can continue their work once the current situation is resolved.

All advance work, which includes archaeological and ecological preparation, and speaking to landowners, will continue as normal so that when funding is in place work can continue with minimum disruption.

Cllr Alan Clark, Cabinet member responsible for transport, said: “It looks highly unlikely that a deal will be completed this year which means that work will probably not start at the planned time of spring 2009 and we estimate that the delay will be for three months.

“This project is the county’s premier transport scheme and we are keen to get it built as fast as possible. It will improve traffic flow in Carlisle by moving vehicles away from the city centre and bring investment to west Cumbria.

“The Treasury has been very supportive throughout this situation and they, along with Cumbria County Council remain fully supported to the project.

“The financial crisis is a global concern that has already impacted upon a number of public sector schemes in the UK and also here in Cumbria.

“In the meantime we will continue the preliminary work so that once the money to continue is in place we can move forward immediately.”

Notes

The CNDR is a 5.13-mile single-carriageway by-pass for Carlisle. It will run from the Newby West junction on the A595 and skirt the western edge of the city before joining the M6 at Junction 44.

The bypass will not only be a traffic relieving measure for the city, but will also provide unprecedented access to the west coast for economic development and specifically will provide access to Kingmoor Park with the aim of creating over 5,000 jobs.

The county council has been pursuing the CNDR scheme for around a decade. The Government first approved CNDR as a PFI scheme back in 2000, planning permission was granted in 2001 and the scheme survived a Public Enquiry in 2002. But the Carlisle floods of January 2005 dealt the scheme a potentially fatal blow.

After the flood, the Environment Agency required a redesign of the proposed new bridge over the River Eden. This meant significant changes to the cost of the scheme and a re-tender of the 30-year PFI contract to build and operate the new road and maintain around 90 miles of approach roads. To complicate matters further, a previously undiscovered stretch of Hadrian’s Wall also turned-up at the Eden crossing.

Thanks to the commitment of the council and the project team, CNDR was put back on track. The bridge has been redesigned, fresh planning permission granted and government has given a new initial project approval and made up to £142.8 million of PFI credits available.

CCC has worked with the Highways Agency and already invested £3million to make sure that when building starts, the CNDR can plug straight into the Highways Agency’s new roundabout at Junction 44 of the M6 with minimal disruption.

The contractor will also take on the maintenance of parts of the A7, A594, A595, A596, A689 and the A6071 for the 30-year period.

ENDS

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