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Capital Project Business Case Fairglen New Link Road

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Capital Project Business Case Fairglen New Link Road The template This document provides the business case template for projects seeking funding which is made available through the South East Local Enterprise Partnership. It is therefore designed to satisfy all SELEP governance processes, approvals by the Strategic Board, the Accountability Board and also the early requirements of the Independent Technical Evaluation process where applied. It is also designed to be applicable across all funding streams made available by Government through SELEP. It should be filled in by the scheme promoter – defined as the final beneficiary of funding. In most cases, this is the local authority; but in some cases the local authority acts as Accountable Body for a private sector final beneficiary. In those circumstances, the private sector beneficiary would complete this application and the SELEP team would be on hand, with local partners in the federated boards, to support the promoter. Please note that this template should be completed in accordance with the guidelines laid down in the HM Treasury’s Green Book. https://www.gov.uk/government/publications/the-green-book- appraisal-and-evaluation-in-central-governent As described below, there are likely to be two phases of completion of this template. The first, an ‘outline business case’ stage, should see the promoter include as much information as would be appropriate for submission though SELEP to Government calls for projects where the amount awarded to the project is not yet known. If successful, the second stage of filling this template in would be informed by clarity around funding and would therefore require a fully completed business case, inclusive of the economic appraisal which is sought below. At this juncture, the business case would therefore dovetail with SELEP’s Independent Technical Evaluation process and be taken forward to funding and delivery. Fairglen Link Road Business Case Page 1 of 49 The process This document forms the initial SELEP part of a normal project development process. The four steps in the process are defined below in simplified terms as they relate specifically to the LGF process. Note – this does not illustrate background work undertaken locally, such as evidence base development, baselining and local management of the project pool and reflects the working reality of submitting funding bids to Government. In the form that follows: •Consideration of long list of projects, submitted with a short strategic level business case •Sifting/shortlisting process using a common assessment framework agreed by SELEP Strategic Board, with projects either discounted, sent back for further development, directed Local Board to other funding routes or agreed for submission to SELEP Decision •Pipeline of locally assessed projects submitted to SELEP, with projects supported by strategic outline business cases - i.e., partial completion of this template •Prioritisation of projects across SELEP, following a common assessment framework agreed by Strategic Board. SELEP •Single priorisited list of projects is submitted by SELEP to Government once agreed with SELEP Strategic Board. •Following the allocation of LGF to a project, scheme promoters are required to prepare an outline business case, using this template together with appropriate annexes. •Outline Business Case assessed through ITE gate process. •Recommendations are made by SELEP ITE to SELEP Accountability Board for the SELEP ITE award of funding. •Lead delivery partner to commence internal project management, governance and reporting, ensuring exception reporting mechanism back to SELEP Accountability Board and working arrangements with SELEP Capital Programme Manager. Funding & •Full Business Case is required following the procurement stage for projects with an LGF Delivery allocation over £8m. Version control Document ID Fairglen New Link Road Business Case Version Gate 2 Version 4 – 190131 Author Dave Joy Document status Final Authorised by Date authorised Fairglen Link Road Business Case Page 2 of 49 1. PROJECT OVERVIEW 1.1. Project name: Fairglen New Link Road Business Case 1.2. Project type: In support of the Fairglen Interchange Improvement Scheme, provide the addition of a new link road from the southbound A130 on to the A1245 southbound and a dedicated left turn slip from the A1245 southbound on to the A127 eastbound. 1.3. Federated Board Area: Opportunity South Essex 1.4. Lead County Council / Unitary Authority: Essex County Council 1.5. Development location: The Fairglen Interchange of the A127 with the A130, adjacent to Morbec Farm, Wickford SS12 9JF. 1.6. Project Summary: Please note that this bid is for funding of the Link Road and Slip Road only. The complete project, including construction of the overall Fairglen Improvement Scheme, is a DfT retained scheme, supported by ECC. Many references in this document will apply to the complete scheme, but, where possible, specific references to the Link Road and Slip Road will be highlighted. The link road is viewed as part of the Fairglen Improvement Scheme and to be constructed at the same time and under the same contract and was thus viewed as included in the overall scheme appraisal. The A127 corridor is a vitally important primary route for the South Essex area which connects the M25, Basildon and Southend (including London Southend Airport). It also provides access to the wider areas of Basildon, Billericay, Brentwood, Canvey Island, Rochford and Wickford and has strategic links to the A13, A128, A129 and A130. The interchange, which is located halfway between Southend-on-Sea and the M25 along the A127, carries over 110,000 vehicles in a 12 hour period. It suffers significant congestion and journey time delays during peak periods and high traffic flows throughout the rest of the week. The slip roads onto the A127 and the main A127 carriageway, either side of the interchange, have been found to be operating above their design capacities, which results in reduced performance. In addition, there are safety concerns relating to poor visibility and poor lane management. The proposed new link road and slip road will alleviate traffic flows at Fairglen and will reduce demand at the main interchange by negating the need for vehicles travelling from Chelmsford, southwards down the A130, to complete two sides of the ‘Fairglen triangle’ south of the A127 to access the A127 heading eastbound towards Southend. Travel distance (approximately 1km) will also be saved. The one lane link road, designed with shoulders, will cross National Grid Land and will join the A1245 at a new signalised junction with right turn capability only. The dedicated left turn slip road will commence after the railway line and join the A127 at a similar point to where today’s slip road joins. Fairglen Link Road Business Case Page 3 of 49 This proposal is supplementary to the main A127 / A130 Fairglen Interchange short term improvement scheme. This scheme has secured £15m LGF funding in Round 1 and is a DfT Retained Scheme. A video fly-through and associated documentation for the total scheme can be found here:- http://www.essexhighways.org/highway-schemes-and-developments/major-schemes/a127-a130- fairglen-interchange.aspx Provisional plans have been developed for a more wide-ranging longer term proposal, but, at this time, no funding exists, to progress this full longer term scheme. Figure 1: Fairglen Interchange (This proposal highlighted in orange) Drawings of the proposed improvements can be found at Appendix F. 1.7. Delivery partners: Nature and / or value of involvement Partner (financial, operational etc.) Financial, operational, programme management and Essex County Council project direction Responsible for design, management and coordinating Essex Highways delivery of schemes Ringway Jacobs and partners Responsible for constructing schemes 1.8. Promoting Body: Essex County Council Fairglen Link Road Business Case Page 4 of 49 1.9. Senior Responsible Owner (SRO): Andrew Cook, Director, Highways & Transportation, ECC 1.10. Total project value and funding sources: For the Link Road and Slip Road only:- Funding source Amount Constraints, dependencies or risks (£m) and mitigation SELEP £6.235 Dependent on this bid ECC funding has already been included in ECC’s aspirational part of the capital programme (19/20 and ECC £3.504 20/21). ECC will need to formally approve its funding levels in advance of each of these years. ECC Revenue £0.105 Subject to approval February 2020 Total project value £9.844 1.11. SELEP funding request, including type (LGF, GPF etc.): £6.235m LGF capital funding is requested from SELEP in the form of a financial contribution. The funding will not constitute State Aid. 1.12. Exemptions: This scheme, as defined, is not subject to any Value for Money exemptions. 1.13. Key dates: Overall Fairglen Interchange Improvement Programme (DfT Retained Scheme) Project milestone Indicative date Preliminary design Completed Detailed design April to December 2019 Tender March to August 2020 Start construction October 2020 End construction September 2022 1.14. Project development stage: Project development stages completed to date Task Description Outputs achieved Timescale Outline Business Case – Detailed study submitted to Completed – paper July 2016 Link Road SELEP issued Strategic Outline DfT Retained Scheme - Completed – paper Business Case – Short Detailed report submitted February 2017 issued Term Improvements to SELEP & DfT Project development stages to be completed (link
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