New Mersey Gateway bridge wins £150m funding package
The flagship Mersey Gateway bridge will be built after the government pledged to pump an extra £150m into the stalled project, ministers will announce today.
A deal has been struck to allow Halton Borough Council to press ahead with finding a private firm to construct and operate the badly-needed second crossing – ending many months of uncertainty.
The logjam has been broken by the department for transport (Dft) agreeing to find an extra £5.5m a year towards private finance initiative (PFI) repayments for 26.5 years, almost £150m in total.
In addition, Halton council chiefs have found £30m in savings to help bring down the bill for the six-lane bridge, which will still cost a whopping £589m.
The long-awaited agreement on a financial package means construction will start in late 2013, allowing the new crossing to open in 2016 or 2017 – delivering the region's most important transport project.
The announcement was timed to coincide with the start of the Conservative party conference in Manchester, where ministers are keen to prove they are delivering for the North, amid harsh spending cuts.
A source close to Chancellor George Osborne, an MP in nearby Tatton, said: "This is about delivering on our promises for the people of Liverpool and we are delighted it's happening."
It is more than a decade since the campaign was launched for a new bridge, to relieve pressure on the ageing Silver Jubilee Bridge – which, every year, carries ten times as many vehicles as it was designed to cope with.
The Mersey Gateway – spanning one kilometre, between Runcorn and Widnes, and boasting three towers up to 140m tall – will also see new link roads built to the existing network.
It is expected to reduce journey times by up to ten minutes in peak periods, cut carbon emissions by easing road congestion and deliver 4,640 permanent jobs, by increasing inward investment.
Liverpool Ports and John Lennon Airport are among key businesses expecting a productivity boost, tipped to be worth £62m a year by 2030.
Drivers will pay tolls – on both the new bridge and the Silver Jubilee Bridge – at a level "similar to those on the Mersey Tunnels", which are currently £1.50 for a single car journey.
The project received planning permission before Christmas, but Halton was unable to move to the procurement stage without "conditional approval" from the Dft.
That approval will be granted today, with five consortia believed to have shown interest in the PFI contract, kick-starting a two-year process.
Final approval will follow, when procurement is completed.
Pressure had been growing on ministers to guarantee the Mersey Gateway would go ahead, after Mr Osborne went on TV to back the project exactly one year ago.
The Chancellor had confirmed an £86m grant, but doubts remained over funding the PFI credits, which account for the bulk of the package.
In 2006, the Labour government agreed year-on-year support of just over £9m, a figure raised to £14.55m today. In addition to the £30m savings, Halton council will also be expected to shave more off its share of the bill in talks with partners.
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