£31m already spent on tram extension
A TOTAL of £31m has already been spent on the Phase Two extension of the tram, according to a new report.
The cash has covered the cost of design work, public inquiries, land purchases, appraisal work and other fees to get the plans to a stage where conditional approval can be considered by the Government.
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The cash has covered design work, public inquiries, land purchases and appraisal work
The details, due to be presented to Notts County Council's cabinet tomorrow, come after county Conservatives said they will pull the plug on the council's contribution to the scheme if they gain control in next month's elections. This could see the scheme collapse – or at least put on hold – despite the £31m investment already made by the county and city councils, the Government and external funders.
Steve Calvert, service director for planning, sustainability and regeneration, said: "If there was an administration that decided it wasn't going to do any work on it for four years, that's a significant impact and a lot more work would have to be done. But I wouldn't go as far as to say it would be down the drain because the project has moved forward.
"But if there is a significant delay it adds to the costs."
The report, which gives details of the latest outline business case, shows that the county council's contribution in real terms, over the life of the contract, will increase from £48m to £53m.
This is partly because the length of the contract has been increased by three years – to get the best value for money – so it is now expected to finish in November 2033. Other factors that have influenced the costs include increased fees for arranging borrowing, reduced interest rates, revised development costs and compulsory land purchases being made earlier, at the construction stage. The effect of the latest cost estimate on Nottingham City Council's contributions has not yet been revealed.
However, the overall cost of the tram extension is still expected to be within initial estimates. The most up-to-date figures put the estimated maximum cost at £471m at net present value – a figure used to show what it would cost if it was paid off at once at today's rates. This is £11m less than the estimated maximum when the Government gave initial approval to the scheme costs in 2006.
The tram extension would see two new lines built to Clifton via Wilford and Chilwell via Beeston.
Cabinet members will be asked tomorrow to approve the start of the procurement process – to award a new joint contract for NET Line One and NET Phase Two – subject to conditional approval being granted by the Department for Transport. It is hoped this could be started by July this year, with a preferred bidder being chosen in December 2010 and a contract awarded in August 2011.
Coun Stella Smedley, Labour cabinet member for transport and highways, said she hoped the extension would go ahead.
"Line One has been a resounding success – the 10 million people a year who use it say so. And I know there is great support for the additional lines," she said.
jon.robinson@nottinghameveningpost.co.uk
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by Mr B J Mann, Nottingham
Wednesday, May 20 2009, 9:32AM
“Apparently Coun Stella Smedley, Labour cabinet member for transport and highways, claimed that "Line One has been a resounding success ¿ the 10 million people a year who use it say so".
But, just a minute, aren't there only 11 million journeys made on Line one a year?
Shouldn't that have read "the 10 million people a year who use it once, and never again, say 'NO'!"?
.”
by The Equaliser, NOTTINGRAD
Wednesday, May 13 2009, 7:01PM
“Stella Smedley should be hoping that the line goes ahead.
In today's climate the electorate might just aske her to pay the £31m back if it doesn't!”
by FW, Nottingham
Tuesday, May 12 2009, 11:59PM
“
There seems to have been a lot of unnecessary ramblings on here about F1 and TV licences, when it should be about the tram.
Pardon me for discussing something I find marginally more interesting than endless wittering about the tram.
But if you really want a reason to fund it, how about the £350M of inward investment from the Government at a point when the local economy could really use the cashflow? And before you start, no government is going to put that kind of money into bus improvements or anything else really, so let's not try the "wouldn't it be better invested..." line yet again.”
by Christopher Frost, Beeston, Notts
Tuesday, May 12 2009, 10:03PM
“There seems to have been a lot of unnecessary ramblings on here about F1 and TV licences, when it should be about the tram. I'd like to know what land has already been purchased, and where is it? Is there any way of finding out? Personally I think every resident in the county should have a vote on whether Line 2 should go ahead. After all everyone will be paying for it somewhere down the line. Pardon the pun. Either with an increase in council tax, WPL, or any other sly money raising scheme that Sherriff John Collins and his gang can think up. Personally I'm against it, and not for the usual NIMBY reasons, as I probably would never use it, as I cycle to work & if I didn't have a bike, I'd catch a bus which is just around the corner, rather than having to walk for 10 minutes to a tram stop. My reasons against it are: the loss of people¿s houses and their quality of life; the loss of green space & trees; the costs (both open and hidden) and the inflexibility of the whole system. The fact that so little financial detail seems to be available for Line One does worry me, especially as its public money that has paid & will continue paying for it. Surely a Freedom of Information request from someone should get elicit an answer or two.”
by Pete, notts
Tuesday, May 12 2009, 6:15PM
“sarah beeston , you should get out more then you might get alife , well hopefully”
by Andyman, Derbys
Tuesday, May 12 2009, 6:12PM
“Interesting to see how this story has turned from initial tram costs to formula 1.
Interesting as this is it is not the issue; many projects have a feasibility process, this costs money, and to present has procured a quantity of land. This land has an asset value which will always rise, by sitting on the land for a few years it will soon rise to that spent on the initial studies.
Such studies are a necessity irrespective of whether a project goes ahead or not, it is classed as a small amount if a project progresses, or a small amount to lose if a project does not go ahead, but it still has its asset value.
Irrespective of anyones views this money had to be spent.”
by legs crossed, and watching the show
Tuesday, May 12 2009, 5:11PM
“I always love the tram stories. They bring out all the fella's and their testosterone. It's like watching a bunch of dogs peeing on each other's territory.”
by MadBadger, The Sett
Tuesday, May 12 2009, 4:52PM
“Doug wrote...
"don't know if BJ is ill, but he has been posting today on one of his letters"
Ooh, goody. Which letter? What's the title to find it?”
by FW, Nottingham
Tuesday, May 12 2009, 4:29PM
“
don't know if BJ is ill
I think we all know the answer to that one.”
by FW, Nottingham
Tuesday, May 12 2009, 4:28PM
“
Its a joy to watch uninterrupted F1 racing on good old BBC!
I am not convinced by Eddie Jordan as a roving commentator, though. And the guy in the commentary box who isn't Martin Brundle seems a little too keen to demonstrate his knowledge of the Bumper Book of Formula One Trivia, while sometimes missing something interesting happening on track. All-in-all, though, an improvement on the ITV coverage, which wasn't bad to start with.”