370 28 November 1995 PRIVATE FINANCE THE "CENTREPIECE" OF REVISED NATIONAL ROAD PROGRAMME - SIR GEORGE YOUNG Transport Secretary Sir George Young today announced a Pounds 500 million extension to the Design, Build, Finance and Operate (DBFO) roads programme. The move means that the national road network will benefit from more than Pounds 1 billion of private sector investment in DBFOs, which together deliver 37 separate schemes in the revised Road Programme. Speaking after the Chancellor's Budget speech, Sir George said: "The Private Finance Initiative is now generating substantial levels of investment beyond what can be funded conventionally by the Exchequer." Commenting on the DBFO contracts being pursued by the Department, Sir George said: "The total value of construction to be delivered by the first eight DBFO projects is some Pounds 550m, and I was able to report encouraging progress with tendering for these schemes earlier this month. "This new private sector investment in the national road network by DBFO companies which I am announcing today will deliver 25 separate schemes in the revised Road Programme. With other PFI highways projects that means nearly Pounds 2 billion of private finance will be invested in our national road system. "At a time of considerable restraint on public sector spending, this represents excellent news for road users and the road building industry and I regard it as the centrepiece of our new roads programme." Sir George also announced the latest review of the roads programme. He said: "Road construction prices have been rising sharply. At the same time, my Department has had to contribute, in two successive public expenditure settlements, to the Government's commitment to keep firm control of public expenditure. Less public money is now available for trunk roads as a whole and will not stretch so far. "Striking the right balance between the needs of business, the travelling public and the environment will never be easy. But it is incumbent on the Government, whenever the time comes to consider the future trunk road programme, to review that balance and see whether it can be improved. "Sometimes that means cutting out of the programme schemes that clearly have not attracted the necessary level of public support and acceptance. In April my predecessor, Brian Mawhinney, cancelled proposals for "link roads" on the M25 west of London, replacing them with more modest widening schemes which would take little or no extra land. This review continues that process. "Schemes removed from the programme I am pleased to announce in this review include the M62 Relief Road north of Manchester, and all proposals for widening motorways beyond four lanes other than those substituting for the abandoned link roads on the M25. "In addition a number of schemes are being reviewed to consider whether there is scope for replacing them with more modest improvements. The proposals for improving the M4 between Junctions 4B and 8/9 between the M25 and Maidenhead and for the Al Gateshead Western Bypass fall into this category." But, Sir George added: "Many bypass schemes are very good news for the environment of the towns and villages that they take traffic away from. I am pleased to say that we have been able to keep a large number of bypasses in the main trunk road programme. Places like Lamberhurst, Selby and Aston Clinton will still have their bypasses firmly in the main trunk road programme. " NOTES TO EDITORS 1. The new roads review document, the full text and tables of which are attached to this Press Notice, sets out the new forward trunk roads programme, and replaces "Trunk Roads in England 1994 Review" published in March 1994. Most of the 67 schemes placed in a "longer term" programme in 1994 are cancelled altogether. The new main programme contains a total of 161 road schemes including those to be taken forward under DBFO arrangements. They have been selected using the same basis as in 1994, which took account of economic benefits, environmental effects and route importance, but with additional emphasis now placed on the significance of schemes for regional and local competitiveness and the extent to which schemes enable better use to be made of the existing network. 2. In addition to the points covered above, the review document: - explains the balance that must be struck between the needs of business and the travelling public, on the one hand, and the environment on the other; - refers to the Transport Debate launched by Dr Brian Mawhinney, which the review does not anticipate, and on which the Government will be publishing a further report; - sets out the current position on future growth of road traffic and how the Department responds to it; and - emphasises the importance of managing the existing network as efficiently as possible; - states how less public money is now available to build trunk roads. 3. The review document contains a comprehensive set of tables listing all current and withdrawn trunk road schemes. It includes a list of schemes scheduled for construction between now and the end of 1996/97. 4. A break-down by cost of privately financed road schemes in England follows: Value Status Pounds m Dartford Queen Elizabeth II Bridge 130 Open to traffic Second Severn Crossing 300 Under construction Birmingham Northern Relief Road 400 Public inquiry closed DBFO January 1995 tranche 400 Bidders short -listed M1/A1 Link Road Al(M) Alconbury-Peterborough Improvement A417 North of Stratton to Nettleton Improvement A417/A419 Cirencester and Stratton Bypass A419 Latton Bypass A69 Haltwhistle Bypass DBFO June 1995 tranche 160 Bids being analysed M40 Junctions lA-3 Widening A19 Norton to Parkway Improvement, Cleveland A30 Honiton to Exeter Improvement A35 Tolpuddle and Puddletown Bypass A564 Doveridge Bypass Additional (Scottish Office) DBFO 40 DBFO Announced M6 Carlisle - Guardsmill extension* (English section) Next DBFO Projects 500 Announced today A13 Iron Bridge-Canning Town A13 Movers Lane Junction A13/A117 Junction Improvement A21 Tonbridge-Pembury Improvement A21 Lamberhurst Bypass A27 Polegate Bypass A303 Wylye-Stockton Wood Dualling* A303 Chicklade Bottom-Mere* A303 Sparkford-Ilchester A303 Ilminster Bypass Dualling* A36 Codford-Heytesbury* A36 Salisbury Bypass A428 Norse Road Link Bedford A43 M40-B4031 Improvement A43 Whitfield Turn-Brackley Hatch A43 Silverstone Bypass A6 Clapham Bypass A6 Rushden-Higham Ferrers Bypass A6 Rothwell-Desborough Bypass A6 Great Glen Bypass A65 Hellifield-Long Preston Bypass A65 Gargrave Bypass A629 Skipton to Kildwick Improvement A650 Bingley Relief Road A650 Hard Ings Road Improvement* ------- TOTAL VALUE 1,930 ------- Note: All schemes are subject to the completion of remaining statutory procedures. Those marked * are also subject to early public inquiry. Press Enquiries: 0171 271 5440; out of hours: 0171 873 1985 Public Enquiries: 0171 271 4800