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Vol 1 (PDF, 5.15 EXHIBIT LIST Reference No: HOC/00520 Petitioner: Buckinghamshire County Council Published to Collaboration Area: Wednesday 07-Oct-2015 Page 1 of 340 No Exhibit Name Page 1 A1436 Tunnel costs CDC July (A1436 ) 3 2 A1437 Tunnel costs CRAG July (A1437 ) 4 3 A1438 Derivation of non market effects note July (A1438 ) 5 4 A1439 DfT Advice note on VfM assessment (A1439 ) 6 - 30 5 A1440 Bucks intro (A1440 ) 31 - 39 6 A1441 Waste and SP (A1441 ) 40 - 55 7 A1442 Community Fund slides (A1442 ) 56 - 71 8 A1443 Community Fund BCC ideas list (A1443 ) 72 - 82 9 A1444 Community Fund WCC ideas list (A1444 ) 83 - 90 10 A1445 Flood and water (A1445) 91 - 96 11 A1446 Heritage (A1446 ) 97 - 107 12 A1447 Steeple Claydon Mitigation Plan (A1447) 108 - 132 13 A1448 Steeple Claydon Station Edi Smockum (A1448 ) 133 - 137 14 A1449 Steeple Claydon Station PB (A1449 ) 138 - 154 15 A1450 Landscape (A1450 ) 155 - 190 16 A1451 Landscape route wide (A1451 ) 191 17 A1452 SW Aylesbury (A1452 ) 192 - 204 18 A1453 Traffic and transport (A1453) 205 - 282 19 A1454 Ecology (A1454 ) 283 - 314 20 A1455 PRoWs (A1455) 315 - 324 HOC/00520/0001 EXHIBIT LIST Reference No: HOC/00520 Petitioner: Buckinghamshire County Council Published to Collaboration Area: Wednesday 07-Oct-2015 Page 2 of 340 No Exhibit Name Page 21 A1456 PRoWs letter (A1456 ) 325 - 326 22 A1457 Property (A1457 ) 327 - 340 HOC/00520/0002 True additional cost of options gPS CLT CLTi CRAG T3i Difference in construction costs £0m £532m £465m £396m (using HS2 figures where available) BUT Acquisition of land costs £50m £3m £3.3m £3.3m AND Non market effects £510m £56m £56m £56m AND Direct economic effects in the Chiltern District £170m - - - Consequent likely £730m £591m £524.3m £455.3m additional cost A1436 HOC/00520/0003 Do not remove this if sending to pagerunnerr Page Title Value for Money Assessment: Advice Note for Local Transport Decision Makers December 2013 A1439 (1) HOC/00520/0006 Executive summary 1. The Department for Transport uses the 'Transport Business Case'1 approach to support decision making for major investment. A key element of this approach is the Value for Money statement, which summarises the impact on the 'Economic Case' of the transport intervention under consideration. 2. The ‘Economic Case’ and supporting Value for Money assessment uses the HM Treasury Green Book2 method of cost benefit analysis. This assesses the value of a transport project by weighing the benefits against the costs to indicate whether it is Value for Money. The Value for Money assessment is, however, not just about money and saving people time; a wide spectrum of impacts is considered in a detailed appraisal, including various impacts on the economy, the environment and social welfare. Further details of DfT’s transport appraisal process, and how it relates to decision making, can be found in recently published note3. 3. As part of the devolution process, a significant portion of the DfT budget is being devolved and is part of the Local Growth Fund from 2015. The selection and approval of funding for individual local major transport schemes will now be the responsibility of local decision makers. 4. It is for local decision makers to determine the most appropriate criteria for prioritising spend on transport and the level of analysis required. Value for Money should nevertheless always be a factor considered in such decision making and in approving funding for individual schemes at all stages. 5. This note has been produced to help promote sound decision making and ensure that Value for Money of schemes is appropriately considered. It provides details of the Value for Money assessment process that DfT has developed over many years to assess major transport schemes, including the role of qualitative, quantitative and monetised information. It also shares some advice on the use of uplifts and values which have previously been used by the DfT in the assessment of major schemes. The presentation of this information and the use of standard tables such as the Analysis of Monetised Cost and Benefits Table and the Appraisal Summary Table are also discussed in this paper. 1 Transport Business Case: https://www.gov.uk/government/publications/transport-business-case 2 HM Treasury Green Book: https://www.gov.uk/government/publications/the-green-book-appraisal-and- evaluation-in-central-governent 3 Transport Appraisal in Investment Decisions: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/253484/transport-appraisal- in-investment-decisions.pdf 4 A1439 (4) HOC/00520/0009 proposal are assessed using qualitative, quantitative and monetised information. 1.6 The Value for Money assessment of a transport intervention has been designed as a staged process to ensure that a complete and robust analysis is undertaken by the practitioner. The Appraisal Summary Table9 (AST) helps to inform this process by providing a template for a summary of all the monetised, qualitative and quantitative impacts of the transport scheme to be presented as a coherent package. 1.7 The box below outlines the main 4 steps in the assessment process and how they make use of the detail presented in the AST. BOX 1: Value for Money Process Appraisal Summary Table Monetised Impacts 1. Initial BCR & the AMCB Table Qualitative & quantitative 2. Adjusted BCR information Adjusted BCR 3. VfM Category Qualitative & Quantitative Information Benefits vs. Costs, 4. VFM Statement Risks, Sensitivities 1.8 The assessment starts with the calculation of those impacts, positive and negative, that can be expressed in money terms (“monetised”). This would typically include things like capital cost of the scheme and revenues. These monetised impacts are summed to construct an Initial Benefit Cost Ratio (Initial BCR) – that is the amount of benefit being bought for every £1.00 of cost to the public purse. A summary of the monetised information along with the Initial BCR is then presented in the Analysis of Monetised Costs and Benefits (AMCB) Table10. 9 Appraisal Summary Table: http://www.dft.gov.uk/webtag/documents/project-manager/xls/U2_7_2- appraisal-summary-table110418.xls 10 AMCB table: http://www.dft.gov.uk/webtag/documents/project-manager/unit2.7.1.php 7 A1439 (7) HOC/00520/0012 2. Initial BCR 2.1 The Benefit Cost Ratio (BCR) considers the impacts to the economy, society, the environment and the public accounts. It offers an estimate of the value of benefit generated for every £1 of public expenditure on a project or scheme. 2.2 The Initial BCR can be constructed using the DfT's WebTAG guidance. WebTAG Unit 3.5.4 provides advice on monetising the different benefits and costs of a transport intervention and also outlines the different assumptions for the appraisal of such impacts. 2.3 Benefits and costs that contribute to the Initial BCR can be presented in the Analysis of Monetised Costs and Benefits (AMCB) Table13. 2.4 The Initial BCR defines the initial Value for Money category. Proposals are judged to offer poor, low, medium, high and very high Value for Money based on the BCR boundaries. These categories include: Poor VfM if BCR is below 1.0 Low VfM if the BCR is between 1.0 and 1.5 Medium VfM if the BCR is between 1.5 and 2.0 High VfM if the BCR is between 2.0 and 4.0 Very High VfM if the BCR is greater than 4.0 2.5 The Value for Money assessment should then account for quantitative and qualitative information. The following sections of this advice note provide more advice on the use of this information, construction of the Adjusted BCR and final Value for Money categorisation. 13 AMCB Table: http://www.dft.gov.uk/webtag/documents/project-manager/xls/amcb-table.xls 10 A1439 (10) HOC/00520/0015 COST BENEFIT SUMMARY Net Present Value of activity / impacts Cost / Benefit of T3i Savings to HS2 Ltd (£m, 2011 prices) Savings in the cost of additional mitigation (if no long tunnel) +100 Savings in ‘Zone’ compensation paid by HS2 Ltd 10 Wider economic savings (conservative estimates) Landscape and Environment 185 Property Blight 100 Transport 4-19 Tourism 99 Overall savings 498-513 Additional engineering cost of T3i 204-286 NET PRESENT VALUE OF T3i £212-309m A1437 HOC/00520/0004 Buckinghamshire Local Authorities and Chilterns Conservation Board Derivation of £510M: Non-market Effects [Typed note of handwritten version handed to committee during local authorities’ presentation in July 2015] 1. Refer to Department for Transport Value for Money Assessment: Advice Note for Local Transport Makers, December 2013 2. Annex A identifies “Landscape Values” 3. Land types are described and values assigned 4. These land types include natural and semi-natural land and rural forested land (amenity) 5. There is no land type described by reference to AONB designation 6. The Local Authorities and CCB say that value attached to such rare and important land must be at least equivalent to that described in 4 above 7. In the AONB there is a permanent loss of 200ha and a temporary loss of 170ha: the temporarily lost land as designated becomes “agricultural land (extensive)”. This is valued at £0.88m per hectare. The value attributed to the designated land set out at 4 above is £1.8m per hectare Calculation Loss = 200ha x £1.8m = £360m Plus difference between: 170ha x £1.8m less 170ha x £0.88m = £156.4m £360m + £156.4m = £510m p:\hs2\chiltern\derivation of non market effect note.docx A1438 HOC/00520/0005 The Department for Transport has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the Department’s website.
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