Finance for road scheme at risk unless urgent start date agreed

MILLIONS of pounds in funding for one of Yorkshire’s most ambitious new road projects could be in jeopardy after contract negotiations with developers have led to long delays.

Initial plans to link Robin Hood Airport to the motorway network were first drawn up almost a decade ago, and work was finally set to begin last October.

But the £56m scheme relies on an £18m grant from the Government’s Regional Growth Fund, approved back in 2011, and the cash offer has deadlines attached.

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If those deadlines, and a series of other conditions are not met, a Government “clawback” process can begin, leading to concern among council officers behind the project.

Progress on the so-called Finningley and Rossington Regeneration Route Scheme (FARRRS) was last examined by leading members of Doncaster Council in September. After that meeting it was suggested work between junction three of the M18 and the airport would begin imminently, but it has been revealed the process hit trouble.

In a report on the council-led project, its manager Nigel Morley has stated the council needs to accept a number of “risks” before work can finally begin.

He said: “Because of the time taken to conclude the financial agreements with developers and the need to meet the Regional Growth Fund grant requirements, there is an urgent need for an urgent decision.

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“This will allow construction work to commence as quickly as possible once agreements are signed in order to reduce the risk to the council of a reduction in availability of the grant caused by the delayed start.”

Mr Morley has drawn up a list of financial risks associated with going ahead with the project, which have not been made publicly available because they contain “commercially sensitive” detail.

But he stated the risks associated with the protracted negotiations and subsequent changes to the deal with developers are now within “tolerable thresholds”. Approval will be sought for the council to borrow up to £8m as a “contingency” should the project exceed its £55.9m total budget once work begins.

Mr Morley said: “Much progress has been made in recent weeks and finally all issues and principles have been agreed. We are now at a point where the financial agreements can be signed by the end of April.”

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The FARRRS scheme is not just about the road, but also includes plans for an “inland port” at Rossington which would link to both the motorway and the nearby East Coast main line.

Plans for a huge housing development on land which was once part of Rossington Colliery are also included, which have been drawn up by UK Coal’s land and property arm Harworth Estates.

It is understood that wrangling between the parties over their individual contributions to the road element of the scheme have led to the delays, but each firm is now happy.

Mr Morley’s report said: “As set out previously, FARRRS is one of our highest priority infrastructure schemes and will unlock significant economic and employment benefits in and around Rossington and the airport.

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“The majority of preparatory work is complete but these are still some outstanding activities that have been held back until such time that the council has the confidence to proceed.”

Mr Morley explains that a major obstacle is currently the diversion of a major power line, which would allow construction contractor Carillion to begin construction of the road.

It is expected that work will begin almost immediately on the project if the changes brought about by negotiations are approved by Doncaster’s elected mayor Peter Davies and his cabinet at a meeting on Wednesday next week.

The meeting will be one of the last before Doncaster’s mayoral election on May 2, in which Mr Davies will stand for his position against nine other candidates.