Issue details

Proposed decision:

For the Cabinet Member for Highways and Transport to give approval to:

     I.        proceed with the currently developed route and design for North Thanet Link and for this to be further developed as a preferred option which best meets the objectives of the scheme.

    II.         for KCC officers to project manage, input into the delivery and supervision of the project, with the cost of all staff and consultant time being recoverable against the project funding.

  III.        progress the preferred option through the next stages of scheme development including detailed design, associated site surveys / investigations, and ancillary works relating to drainage, environmental and highway mitigation.

  IV.        develop and submit a planning application for the scheme, following completion of the outline design process.

   V.        take all steps necessary to obtain and implement all Statutory Orders and approvals or consents required for the scheme, including but not limited to Compulsory Purchase Order, Side Roads Order and any Traffic Regulation Orders required for the delivery and successful operation of the scheme.

  VI.        negotiate and complete all required land acquisition including by means of Compulsory Purchase Order as necessary to secure the delivery and future maintenance of the scheme.

VII.        enter into Major Road Network funding agreement with the Department for Transport, subject to the approval of the Corporate Director for Finance and for any secured funding to be spent on the design, development and delivery of the scheme.

VIII.        progress and complete a procurement process and enter into construction contracts as necessary for the delivery of the scheme, subject to the approval of Strategic Commissioning.

  IX.        allow the Corporate Director of Growth, Environment & Transport, under the Officer Scheme of Delegations, to take further or other decisions as may be appropriate to deliver the North Thanet Link scheme in accordance with these recommendations.

Reason for the decision

To provide KCC officers with the necessary delegated authority to progress and deliver the North Thanet Link scheme.

Background

North Thanet Link (formally known as A28 Birchington, Acol and Westgate-on-Sea Relief Road) is a strategic transport project located within the district of Thanet, which focusses on improving connectivity and resilience within the local road network.

The Scheme has been identified as a priority intervention within the Thanet Transport Strategy, which in turn supports Thanet District Councils adopted Thanet Local Plan. It is also identified as a priority within KCC’s Local Transport Plan 4 and is a key intervention within Transport for the South East’s Strategic Investment Plan.

Further details for the scheme can be found within the documents section at the following web link https://letstalk.kent.gov.uk/north-thanet-link

Options (other options considered but discarded)

Other options considered as part of the bidding process to date include a coastal relief road and improvement package, improvements to the existing A28, a partial bypass of Birchington and a southern bypass. A range of public transport only based interventions have also been considered. However none of these options were deemed suitable and as such were discarded.

How the proposed decision supports Framing Kent’s Future 2022-2026:

Levelling Up Kent – The scheme is located within the District of Thanet and will provide enhanced transport accessibility and connectivity within the district of Thanet, one of Kent’s most deprived areas. The proposed walking and cycling infrastructure will provide enhanced active travel opportunities which will contribute towards improving the health of the local population.

Infrastructure for Communities – The scheme is consistent with ‘Infrastructure First’ principles by accelerating the delivery of key transport infrastructure and enhancing leverage of external infrastructure investment within the district from central government. The scheme will also contribute towards providing viable and attractive travel options that focus on both road and active travel modes.

Environmental Step Change – The scheme seeks to provide an alternative route to the A28, which has previously been part of an Air Quality Management Area. The proposed walking and cycling infrastructure will provide enhanced active travel opportunities contributing towards improving accessibility by a range of sustainable travel options.

How the proposed decision supports Securing Kent’s Future

The scheme will not impact on the 2023/24 budget as all remaining scheme development activities for this year will be funded by existing (ringfenced) external sources, therefore the scheme will not compromise Objective 1. Whilst funding may be required from the council’s feasibility reserve in 2024/25, which is relevant to Objective 2, there are consequential benefits to scheme programme, scheme risk management and maximising benefits from previous investment, which justifies such expenditure. The close alignment of the scheme to Framing Kent’s Future and the future opportunity for all scheme costs to be recouped from external funding, means that this directly supports outcomes that residents and communities are seeking to achieve and is therefore consistent with Objective 3. 

Financial Implications

The scheme estimate is £76.7m. This figure is informed by a quantitative risk assessment. Estimates have been uplifted due to recent inflationary rises, and a price risk allowance and contingency is included in the £76.7m up to the date of proposed construction

.

Subject to successful progression through the DfT Major Road Network bidding process, North Thanet Link will be fully externally funded and delivered through the following funding streams:

DfT Grant Funding - £ 62.9m

S106 Developer Contributions (Local Contribution) - £13.8m

The S106 contributions are expected to be banked in full in year 25/26, however exact timing is dependent on development consent and first occupation.

The scheme is referenced within the KCC 23/24 Capital Programme row 58 (Page 26). Whilst the scheme cost is currently stated as £49.001m, this reflects a cost estimate undertaken in 2019 and its previously anticipated delivery programme. Those costs were also calculated prior to the Covid-19 pandemic and Ukraine/Russia conflict, which amongst other nationally significant events, has led to inflationary rises for all schemes within the construction sector. The scheme budget will be updated at point of funding offer from DfT (following potential OBC approval).

Whilst no KCC funding is required for the scheme, to continue to progress scheme between now and further DfT funding award and/or S106 receipt, a level of funding (up to £1.97m) may be required from the council’s Feasibility Reserve in 2024/25 (subject to internal approval processes). This will enable time sensitive scheme development activities to take place, such as environmental surveys, design and a planning application. This would be reimbursed when grant and/or S106 developer funding is received and banked. If following this process, KCC decide not to progress the scheme any further, any money spent on OBC or FBC could be abortive.

Future maintenance costs for the scheme would need to be covered by general highway maintenance budgets, however commuted sums have been included for some of the proposed assets such as street lighting and signal equipment.