Agenda item

A21 and East Kent Access Phase 2 – Cost Increases

(Item 10 – Report by Mr Keith Ferrin, Cabinet Member for Environment, Highways & Waste and Mr Adam Wilkinson, Managing Director for Environment and Regeneration)  (The Chairman declared this item to be urgent as a response needed to be given to the outcomes arising from the meeting of the Regional Transport Board held on Wednesday, 12 March 2008. (Mr Mick Sutch, Head of Planning and Transport Strategy was present for this item)

(1)       This report set out the implications of the recent announcement of cost increases of two trunk road schemes on the A21 – Pembury By-Pass to Tonbridge By-Pass and Kippings Cross to Lamberhurst and of the KCC scheme East Kent Access Phase 2.

(2)       Following criticism that the actual cost of the many completed trunk road schemes was significantly higher than the estimated costs, the Department of Transport commissioned the Nicholls report to recommend changes in procedures.  The Nicholls report has led to the re-estimation of some Highway Agency Schemes which have reached a key stage in their delivery and, as a result, the Regional Transport Board had considered three schemes in the South East at a meeting held on 12 March 2008, two of which are in Kent.  These are the A21 Tonbridge By-Pass – Pembury By-Pass duelling which has risen to an estimated cost of £64m to £112m and the A21 Kippings Cross – Lamberhurst Improvement which has risen from £40m to £103m.  The Regional Transport Board has agreed that the A21 Tonbridge By-Pass – Pembury By-Pass duelling scheme should remain a regional priority and that the Highway Agency should proceed with its development. The A21 Kippings Cross – Lamberhurst Improvement Scheme continues to be a priority but the DfT has requested that the value for money of the scheme be reassessed due to the scale of the increase in costs.  The Regional Transport Board has written to the Secretary of State of Transport emphasising its concern over the scale of these increases stating that it is looking to the DfT to make an appropriate contribution in order to meet these. Without such n contribution, or an increase in the Regional funding allocation the regional programme would be delayed and the delivery of the sustainable economy growth set out in the South East Plan and Regional Economic Strategy jeopardised. 

(3)       With regard to East Kent Access Phase 2, the cost has risen from £64m to £73m mainly due to construction inflation of around 6%.  Of this £9m difference, KCC is already funding £2.5m to progress the scheme, leaving a £6.75m real shortfall.  New draft DfT guidance states that KCC is expected, as the scheme promoter, to bear 25% of the shortfall – ie., something under £2m. 

(4         During the course of discussion, Mr Chard said that these schemes are vital to Kent and it was an incredible situation that their projected costs had increased by such a significant amount.  Mr Gibbens said that any slippage or failure to provide the A21 schemes would seriously throw into doubt the effectiveness of the proposed new hospital at Pembury and therefore it was essential that both these schemes were built and on time.

(6)       Following further discussion it was agreed that Mr Carter and Mr Ferrin would jointly write to the Government setting out the County Council’s concerns in relation to these schemes as detailed in the report and also reflecting the points raised during the course of the Cabinet debate.