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Newcastle Northern Access Corridor Phases 2 & 3 (Cowhill to Haddricks

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Newcastle Northern Access Corridor Phases 2 & 3 (Cowhill to Haddricks Newcastle Northern Access Corridor Phases 2 & 3 (Cowhill to Haddricks Mill) Gateway 2 Full Business Case Submission 1 Newcastle Northern Access Corridor Phase 2 & 3 Table of Contents 1 Strategic Case ................................................................................................................... 6 1.1 Business Strategy ............................................................................................................... 6 1.2 Northern Access Corridor .................................................................................................. 17 1.3 Related Schemes: ............................................................................................................. 21 1.4 Existing Problems and Issues ........................................................................................... 25 1.5 Predicted Future Issues .................................................................................................... 43 1.6 Scheme Objectives ........................................................................................................... 50 1.7 Measures for success ....................................................................................................... 51 1.8 Scope ............................................................................................................................... 52 1.9 Constraints and Interdependencies ................................................................................... 54 1.10 Stakeholders ..................................................................................................................... 56 1.11 Options ............................................................................................................................. 62 2 Economic Case ................................................................................................................ 71 2.1 Modelling .......................................................................................................................... 71 2.2 Value for Money Methodology ........................................................................................... 71 2.3 Assumptions ..................................................................................................................... 73 2.4 Options Appraisal .............................................................................................................. 76 2.5 Sensitivity & Risk Profile ................................................................................................... 79 2.6 Appraisal Summary Table ................................................................................................. 81 2.7 Value for Money Statement ............................................................................................... 89 3 Financial Case ................................................................................................................. 98 3.1 Introduction ....................................................................................................................... 98 3.2 Assumptions ..................................................................................................................... 98 3.3 Costs ................................................................................................................................ 99 3.4 Funding Strategy ............................................................................................................. 105 4 Commercial Case .......................................................................................................... 108 4.1 Introduction ..................................................................................................................... 108 4.2 Procurement Strategy ..................................................................................................... 108 4.3 Risk allocation and Transfer ............................................................................................ 108 4.4 Contract Length .............................................................................................................. 108 4.5 Human Resources Issues ............................................................................................... 109 2 4.6 Contract Management ..................................................................................................... 109 5 Management Case ......................................................................................................... 110 5.1 Introduction ..................................................................................................................... 110 5.2 Evidence of similar projects ............................................................................................. 110 5.3 Programme & Project Dependencies .............................................................................. 110 5.4 Governance/ Organisational Structure ............................................................................ 111 5.5 Benefits Realisation Plan, Monitoring and Evaluation ...................................................... 118 Appendix A Policy Fit B NAC Phase 1 Operational Performance C Cow Hill Sustrans Report D Newcastle HELAA E Details of housing and job creation/retention F S-Paramics LMVR G S-Paramics Network Layout H TEMPro MSOA Plots I Cow Hill Scheme J Dukes Moor Scheme K Blue House Scheme L Osborne Road Scheme M Haddricks Mill Scheme N Killingworth Road Scheme O Risk Register & QRA P Gosforth Consultation Report Q Blue House Options Considered R Osborne Road Options Considered S Bus Priority Feasibility Study T Haddricks Mill Options Considered U Economic Outputs – AMCB, TEE, PA V Generalised Cost Assessment W Appraisal Summary Table X Killingworth Road Land Requirements Y Project Plan Z Project Governance AA Benefits Realisation Plan BB Communications & Stakeholder Mapping CC Value for Money Statement DD Monitoring & Evaluation Plan Introduction This document and its series of appendices set out the business case for a programme of transport infrastructure investments for the Newcastle Northern Access Corridor. The full corridor covers the 3 A167 from Cowgate junction to the Cowhill interchange, then along the A189 to Haddricks Mill roundabouts; it will be split into three phases. Phase 1 has already been completed. Some of the work under Phase 2 can be undertaken immediately, this phase has been further subdivided. The phases are thus as follows: Phase 1: Cowgate junction Phase 2a: Cowhill interchange and Duke's Moor junction Phase 2b: Blue House roundabout and Osborne Road junction Phase 3: Haddricks Mill roundabouts This Full Business Case (FBC) submission is for the Northern Access Corridor Phases 2 and 3 – Cowhill interchange to Haddricks Mill roundabouts – which is hereafter referred to as “the scheme” or “this scheme”. The Phases 2 & 3 study has been split in to six deliverables: Cowhill interchange: A167/A189 grade separated junction; Duke’s Moor junction: Kenton Road/Grandstand Road junction; Blue House roundabout: A189/B1318 junction; The junctions of Ilford Road, Osborne Road (B1600) and Moorfield with Jesmond Dene Road (A189); The Haddricks Mill roundabouts (A191/A189 junctions); and Killingworth Road. The Northern Access Corridor (NAC) programme has had a long gestation period, dating back to 2009. A Programme Entry submission was prepared for the North East Combined Authority (NECA) for the wider corridor works between Cowgate and Haddricks Mill Road/Killingworth Road. Programme Entry approval was obtained in March 2010. In February 2015 an application was made for £13.4m from the Highways Maintenance Challenge Fund (HMCF) for the Ouseburn bridge, Metro bridge, Killingworth Road reconstruction and retaining wall works. Nexus agreed to contribute £550,000 to the scheme from their Metro Asset Renewal Programme. The Metro Bridge replacement work is programmed for financial year 2017/18, with the actual deck replacement and associated Metro and road closures planned for August 2017. The HMCF funding was confirmed by Department of Transport in July 2015, the money has been received and we are moving forward with the works under a separate scheme. The BCR of the scheme is 4.2. This indicates that the scheme offers Very High Value for Money based on the DfT guidance criteria. The present value of benefits is £95.9m. The scheme is also expected to reduce greenhouse gas emissions due to reduction in queueing and delay and thus fuel consumption. This reduction in greenhouse gases will benefit the economy by £0.7m. Other non- monetised benefits predict that the scheme will have minimal impact for noise, air quality, historic environment, biodiversity and water. The scheme will have a positive impact on access to services, physical activity and improve issues of severance along the scheme itself as well as at Haddricks Mill junction. This document has been prepared in accordance with NECA’s March 2015 Transport Assurance Framework (TAF) and WebTAG guidance issued by the Department for Transport (DfT).In 4 accordance with the requirements of the TAF, the scheme fulfils the criteria for Gateway 2 consideration (with caveats) in that: Modelling work has quantified the likely impact from the intervention(s); Detailed design has been completed, with single preferred options having been developed for each of the critical locations; A Full Business Case for the scheme has been prepared, providing evidence
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