call for expression of interest - hants

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1 Call for Expression of Interest Autumn 2015 Project name Stubbington Bypass Delivery Location Fareham Borough – The scheme is located in Stubbington, which lies in the southern part of the borough of Fareham, separated from the main part of the town by open farmland. The Solent Enterprise Zone (former Royal Navy site of HMS Daedalus) lies to the south-east of Stubbington, on the borough boundary with Gosport. Lead applicant organisation Hampshire County Council Postal address Economy, Transport and Environment Department Hampshire County Council, Elizabeth II Court West, Winchester, SO23 8UD Email address [email protected] Phone number 01962 846089 Project lead name Heather Walmsley (Team Leader, Major Schemes, Strategic Transport) Partner names Fareham Borough Council Project summary (200 words) Provide a concise description of the proposal, including why it is needed, what it will deliver, the impact of not delivering the project, and why funding is required. Within the Solent LEP’s current Strategic Economic Plan, the need to improve access to the Gosport and Fareham peninsula is identified as a key priority for the Solent LEP in order to remove transport barriers to economic growth and to help encourage new investment and development into the area. Existing routes off the peninsula are operating at or above capacity during peak periods. This congestion causes frustration and delay and results in an additional cost to businesses, which in turn serves to discourage investment within the Gosport peninsula. The SEP identifies a complementary package of highway infrastructure improvements focused on improving strategic connectivity to Fareham and Gosport and to support accelerated delivery of key strategic housing /employment growth sites, including the Solent Enterprise Zone and Welborne. As a key component of the wider package, the Stubbington Bypass will connect the B3334 Gosport Road and the B3334 Titchfield Road, avoiding the need to route through the centre of Stubbington Village (see plan below). As part of the scheme, essential on-line improvements will also be made to the existing sections of Gosport Road at the southern end of the alignment (between Rome Farm Cottages and Peel Common Roundabout) and to Titchfield Road at its northern end (between Titchfield Gyratory and Titchfield Nurseries).

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Page 1: Call for Expression of Interest - Hants

1

Call for Expression of Interest Autumn 2015

Project name Stubbington Bypass

Delivery Location Fareham Borough –

The scheme is located in Stubbington, which lies in the southern part of the

borough of Fareham, separated from the main part of the town by open

farmland. The Solent Enterprise Zone (former Royal Navy site of HMS

Daedalus) lies to the south-east of Stubbington, on the borough boundary

with Gosport.

Lead applicant organisation Hampshire County Council

Postal address Economy, Transport and Environment Department Hampshire County Council, Elizabeth II Court West, Winchester, SO23 8UD

Email address [email protected]

Phone number 01962 846089

Project lead name Heather Walmsley (Team Leader, Major Schemes, Strategic Transport)

Partner names Fareham Borough Council

Project summary (200

words)

Provide a concise description of the proposal, including why it is needed,

what it will deliver, the impact of not delivering the project, and why funding

is required.

Within the Solent LEP’s current Strategic Economic Plan, the need to improve access to the Gosport and Fareham peninsula is identified as a key priority for the Solent LEP in order to remove transport barriers to economic growth and to help encourage new investment and development into the area. Existing routes off the peninsula are operating at or above capacity during peak periods. This congestion causes frustration and delay and results in an additional cost to businesses, which in turn serves to discourage investment within the Gosport peninsula. The SEP identifies a complementary package of highway infrastructure improvements focused on improving strategic connectivity to Fareham and Gosport and to support accelerated delivery of key strategic housing /employment growth sites, including the Solent Enterprise Zone and Welborne. As a key component of the wider package, the Stubbington Bypass will

connect the B3334 Gosport Road and the B3334 Titchfield Road, avoiding

the need to route through the centre of Stubbington Village (see plan below).

As part of the scheme, essential on-line improvements will also be made to

the existing sections of Gosport Road at the southern end of the alignment

(between Rome Farm Cottages and Peel Common Roundabout) and to

Titchfield Road at its northern end (between Titchfield Gyratory and

Titchfield Nurseries).

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The Stubbington Bypass scheme will therefore deliver a reliable highway

route for traffic wishing to travel from the Gosport Peninsula westwards

towards the M27 Junction 9 whilst avoiding existing heavily congested parts

of the transport network, particularly through Stubbington village centre,

where limited network capacity and several junctions located in close

proximity result in severe delays and long queues of traffic at peak times.

The key outcomes which will help support regeneration and economic

growth on the peninsula therefore include:

Reduced / more reliable journey times on the western access corridor;

Improved strategic connectivity to the motorway network, providing

agglomeration benefits;

Reduced congestion / delays (reduction in lost productive time for

businesses); and

Improved network resilience.

The scheme is central to the wider package of proposed transport measures

to improve access to Fareham and Gosport (see diagram below) and will

add value to the committed and proposed infrastructure investment

(including significant investment to date from the Solent LEP, e.g. Newgate

Lane South).

With alternative funding sources not able to cover the scheme cost, securing

LGF funding to allow the implementation of the bypass is vital to achieving

the necessary improvements to journey times and accessibility that will help

to attract growth and investment into the area and to maximise and

accelerate development at the Solent Enterprise Zone.

An Illustration of the components of the Stubbington Bypass scheme:

Page 3: Call for Expression of Interest - Hants

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How Stubbington Bypass underpins a wider transport package to support planned growth in Fareham /

Gosport:

Note – planned timescales indicated may not be up to date

The objectives / outcomes for the Stubbington Bypass scheme:

Scheme Objectives Key Outcomes Sought

To provide a viable alternative route for traffic wishing to travel from the Gosport Peninsula westwards towards the M27 Junction 9, whilst avoiding heavily congested parts of the transport network

Reduced congestion and delays on the local highway network

More reliable / improved journey times for western access to / from the Gosport Peninsula

Traffic relief to Stubbington village –reduced severance

Support housing / jobs growth

Support inward investment at strategic growth sites, in particular the Solent Enterprise Zone

To help encourage regeneration, investment and growth in the area To help remove the transport barriers to growth To help unblock critical bottlenecks and congestion hotspots on strategic routes, in town centre areas and in areas of employment To provide new and improved existing infrastructure to help better manage traffic flows, particularly during peak periods

B3385 Newgate Lane South

Peel Common

Roundabout

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How does the project fit with the Solent LEP's Strategic Priorities? (Max 50 words on each)

Unlocking sites for housing and employment

The scheme will indirectly facilitate a number of planned housing

and employment sites in Gosport and Fareham (see table below)

through improved strategic access and mitigation of cumulative

traffic impacts on the wider network.

In particular, the scheme is expected to facilitate acceleration of

some key sites including Gosport Waterfront and the Solent

Enterprise Zone and smaller sites within Gosport Town Centre.

Improving our connectivity within the Solent and beyond

A key function of the scheme is to complement the wider access

improvements in the area and act as a gateway from the west to

Fareham and the Enterprise Zone – improving the links to the

wider strategic network (e.g. M27). This serves to enhance

strategic connectivity and strengthen the economic

competitiveness of the Fareham /Gosport area.

Stimulating and supporting innovation

Improved accessibility to the Gosport peninsula from the west

will enable substantial knowledge assets in, for instance, the

marine industry to be developed to support new business

development and encourage innovation.

Improving the skills and talent of our current and future workforce

Improved access to the new CEMAST centre of excellence at

the Solent EZ will help ensure local residents are equipped to

take up the jobs that will be created, secure the transition of

young people to employment and redress the balance of

inappropriate skills for jobs in the area and create employment

opportunities for the deprived areas in Gosport.

Supporting business growth through access to resources and advice

As a transport scheme, there is limited direct impact on this

priority. However, improved connectivity will generally create

agglomeration benefits, bringing businesses closer together and

could therefore promote greater knowledge exchange and co-

working.

Growth Site Details Level of

influence

Solent Enterprise Zone Total: c.140,000 sq. m employment floorspace; 200 homes

Higher

Daedalus East c. 35,000 sq. m employment floorspace; 1,000 jobs

Daedalus West c. 35,000 sq. m employment floorspace; 1,050 jobs

Waterfront / Daedalus Park c. 72,500 sq. m employment floorspace; 1,600 jobs 200 homes

Gosport Waterfront 700 homes

c.40,000 sq. m employment floorspace

Higher

Gosport Town Centre c.200 homes Higher

Fareham Town Centre 240 homes Moderate

Solent 2 / Little Park c.35,000 sq. m employment floorspace Moderate

Welborne 6,000 homes

105,000 sq. m employment floorspace (5,735 jobs)

7,000 sq. m retail floorspace

Lower

Haslar c.300 homes

c.4,000 sq. m employment floorspace; 500 jobs

Lower

Rowner c.700 homes + 200 homes redeveloped : 2,250 sq m retail floorspace

Lower

Peters Rd, Lockheath c.250 homes Lower

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Supporting our key strategic sectors

The proposed developments which will be facilitated by the

scheme will help underpin growth in the area creating business

gateways (including marine and advanced manufacturing etc) at

both local and national levels (supported by enhanced

connectivity) and will help develop new local supply chains.

How will the project raise productivity

in the Solent?

Businesses (existing / prospective) on the peninsula will benefit from reduced, and more reliable, journey times on the primary western access route. This will reduce business related costs, such as costs of access to customers and costs of access to supplies, and contribute to increased levels of efficiency (e.g. reduction in lost productive time associated with congested conditions). This is particularly the case due to improved access to the wider strategic network, including the M27 (Junction 9).

Productivity in the local economy would be improved by bringing businesses closer together (in terms of enhanced transport connectivity) and closer to larger labour markets (so called agglomeration benefits) - the Stubbington Bypass will have an important role in strengthening connectivity of the peninsula to the surrounding area and supporting the intensification of the existing sectoral specialisms and clustering, focusing on Advanced Manufacturing specialising in the marine, aerospace and aviation sectors. The potential impact of this for the local economy is considered in the response below.

How will the proposal demonstrate

additionality? (i.e. what effect will the

proposal have compared to a

baseline)

The overarching transport infrastructure package for Fareham and Gosport, including Stubbington Bypasss, has significant additionality in terms of the development which will be levered into the area. Economic benefits will be in the form of strategic housing and employment as well as providing a boost to encourage investment in existing central business and commercial areas. The incremental benefit of the Stubbington Bypass scheme is predominantly due to two main factors:

Acceleration effects on major development projects (principally Solent Enterprise Zone, but also Gosport Town Centre, Gosport Waterfront) – this is a result of the improved infrastructure and connectivity provided by the Stubbington Bypass (over and above the Intermediate Programme). For example, delivery rates for SEZ West and airfield are expected to increase by 60% compared to currently expected trajectories; and

Enhanced agglomeration benefits, principally arising from the important role of the Stubbington Bypass in strengthening connectivity of the peninsula to the surrounding area and supporting the intensification of the existing sectoral specialisms

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and clustering, focusing on Advanced Manufacturing specialising in the marine, aerospace and aviation sectors1. The wider business

case for the Fareham & Gosport Intermediate Infrastructure

Programme estimates the effect of the Stubbington Bypass scheme in this regard to be an increase in GVA per job of approximately £4,600 (compared to the Intermediate Programme – without Stubbington Bypass).

Describe any wider economic impacts

of the proposal

As a key phase of the wider overarching package of improvements for Fareham and Gosport, the scheme will trigger significant wider economic benefits for the surrounding area. The economic benefits will be widespread, helping to accommodate transport movements from key strategic sites at the Solent Enterprise Zone and Welborne as well as the benefits for Gosport peninsula and centres of employment at key business parks:

Forecast reliability and journey time savings for western access to the Gosport peninsula have been demonstrated to be significant. There are also beneficial impacts on other parts of the network due to the re-assignment of traffic to the bypass. Overall, this is expected to improve the operational efficiency, performance and resilience of the highway network and help to make the Gosport / Fareham area more attractive as a business location, thereby encouraging new businesses to invest / locate there, or existing businesses to expand.

The enhanced connectivity provided by the scheme means that businesses would have access to a larger pool of labour.

Workers would also have access to a wider range of jobs - Improved access provided by the scheme will increase the ability of people to access jobs within the Fareham/ Gosport areas. Although there is a focus on attracting inward investment that creates jobs which are filled by local people (and hence contributes to reducing out-commuting), there is still likely to be a need for some specialist roles to be filled from further afield and the ability of the area to have access to a larger labour pool will be a more attractive proposition for businesses considering whether to invest in the area.

Increased tax revenues (received by government) arising from labour market impacts (from labour supply impacts and from moves to more productive jobs) – e.g. resulting from facilitating the expansion of advanced manufacturing and engineering jobs.

Overall, the improved capacity and performance of the

1 The UK is a world leader in the marine and maritime sector and the Solent’s coastal location means that it is at the

heart of the sector, accounting for 20.5% of Solent’s GVA, provides 40,000 jobs, supports more than 3,000 businesses and is growing by five per cent per annum. Seven of the top 10 global aerospace companies have a presence in the Solent region in south Hampshire including EADS, Boeing, Lockheed Martin, Airbus Industries, and Finmeccanica. Defence features strongly in the south of Hampshire where Portsmouth Naval Base is home to almost two thirds of the Royal Navy’s surface ships accounting for 17,200 jobs at peak times

Page 7: Call for Expression of Interest - Hants

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highway network will help to make the Gosport / Fareham area more attractive as a business location, thereby encouraging new businesses to locate there or existing businesses to expand.

Describe any social impacts of the

proposal

The primary social impacts of the scheme are considered to include:

Reduced severance within Stubbington Village, due to the removal of a significant volume of through traffic.

Enhanced facilities will be provided for pedestrians and cyclists as part of the scheme, including a new off road cycle facility alongside the bypass.

A slight reduction in accidents is expected overall, principally due to lower traffic volumes through Stubbington, and hence reduced vehicular conflicts with pedestrians and cyclists.

Economic growth and access to jobs supported by the scheme will help to address serious levels of social and economic deprivation and a deteriorating competitive position in Gosport - Gosport’s economy is well below the median value, has gross weekly earnings below the national median value and is in the bottom 20% of authorities nationally in terms of its employment rate.

Outputs (For each, explain where the output will be delivered (in Solent or outside), and the basis of

your calculation).

Number of new permanent jobs

created directly

In terms of direct employment outputs, these are solely taken to be

those created during the construction process of the scheme. It is

acknowledged that these would therefore be temporary in nature.

Nevertheless, an estimate has been made based on 12.5

FTE/£million of the total scheme spend.

This equates to 416 temporary construction jobs. At this stage it

is not possible to predict whether, if this level of employment is

achieved, the jobs will be entirely ‘new’ to the local economy. A

conservative view that only 20% will be net additional jobs would

result in 83 new jobs. It should be noted that this is a notional

estimate and it is anticipated that any net additionality could be as

high as 40% as suggested by HM Treasury Guidance.

Number of new permanent jobs

created indirectly

Improved access to Fareham and Gosport will help to maximise

(and accelerate) development at the Solent EZ in particular, where

c.3,700 jobs are planned by 2026. This includes SEZ East (c.1,000

jobs), SEZ Waterfront and Daedulus Park (c.1,600 jobs), and SEZ

West and airfield (c.1,000 jobs).

Other sites with planned employment creation supported by the

scheme (e.g. Gosport Waterfront and Solent2 / Little Park) account

Page 8: Call for Expression of Interest - Hants

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for approximately 4,000 planned jobs. (based upon planned

employment floorspace quantity / type, up to year 2040, and typical

employment densities applied (HCA Employment Densities Guide,

2010).

Number of safeguarded jobs The bypass will indirectly help safeguard a proportion of 12,700 full

time and 7,900 part time jobs that exist within Gosport Borough

[Source: ONS business register and employment survey].

Maintaining strong transport links is essential to retain and attract

existing / new businesses. Without the bypass, worsening traffic

conditions will make the area less attractive as a business location

and could be a contributory factor in firms based within the

peninsula relocating to other areas with lower costs of congestion

and more reliable journey times.

New houses enabled The Stubbington Bypass will indirectly support the delivery of

planned housing - approximately 2,500 new homes across the

Gosport peninsula, including at SEZ (c.200), Gosport Waterfront

(c.700), and Gosport Town Centre (c.200).

The business case for the Fareham and Gosport Intermediate

Infrastructure Programme identifies that the full infrastructure

package for Fareham and Gosport, including the Stubbington

Bypass scheme, would be pivotal in enabling delivery of c. 5,500

additional new homes (over and above that assumed to be

deliverable in a Reference Case), with approximately 1,500 in the

period to 2021.

New employment / education space

enabled (type and m2)

In particular, the scheme indirectly supports the delivery of approximately 140,000m2 of planned employment floorspace at the SEZ (up to 2040). Significantly, the scheme would accelerate the delivery of employment spaces at these sites. The approximate breakdown of floorspace type is as follows:

B1a – c.10,000m2

B2/B8 – c.84,000m2

Aviation – c.33,000m2

A1/A3 – c.2,500m2 The scheme would also support other planned employment sites, in particular Gosport Waterfront (c. 40,000m2) and Solent 2 / Little Park (c.35,000m2). The business case for the Fareham and Gosport Intermediate Infrastructure Programme identifies that the full infrastructure package for Fareham and Gosport, including the Stubbington Bypass scheme, would be pivotal in enabling delivery of c. 83,200m2 of additional new employment (B-class) floor space (over and above that assumed to be deliverable in a Reference Case).

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Estates improved (type and m2) No significant impact is expected.

Skills outputs (apprentices / learners) Directly, the construction of the scheme is expected to create

opportunities for apprentices within the local area.

Indirectly, the role of the scheme in supporting inward investment

and job creation (particularly at the SEZ) would help to create local

apprenticeship opportunities associated with new businesses.

Leveraged investment resulting from

project

As described elsewhere, the scheme will enhance strategic

transport connectivity of the Gosport Peninsula and reduce

transport related business costs.This will contribute towards

improving the area’s economic competitiveness and encourage

inward investment. The business case for the Fareham and

Gosport Intermediate Infrastructure Programme identifies that the

full infrastructure package for Fareham and Gosport, including the

Stubbington Bypass scheme, would generate an additional £180

million private sector investment.

Describe any other outputs to be

delivered as a result of this project.

Journey time savings provided by the scheme are forecast to

be up to 4.5mins (bypass route compared to Titchfield Road

route without bypass) in the PM peak.

The 2011 Annual Business Survey, produced by the Office of

National Statistics suggests that 37% of construction spend in

the UK relates to the sector’s GVA contribution nationally. On

this basis, the impact of the construction investment on

GVA is therefore approximately £12m.

The business case for the Fareham & Gosport Intermediate

Infrastructure Programme estimates the incremental effect of

the Stubbington Bypass scheme (compared to the

‘Intermediate Programme’) to be a 12% increase in GVA per

job (£4,600 per job). The resultant uplift in GVA is

estimated at approximately £173m per annum.

2016/17 2017/18 2018/19 2019/20 2020/21 Total

Local Private Sector

Contributions

£ £ £ £ £ £

Local Public Sector

Contributions

£1m £1m £ £ £ £2m

LGF Funding Request £1m £1.5m £4m £18m £7.5m £32m

Total Project Costs £2m £2.5m £4m £18m £7.5m £34m

Are local funding contributions

confirmed, and if not, when will they be

confirmed?

No

Currently, it is anticipated that Hampshire County Council will

invest £2m (being 6% of the total scheme cost) from its capital

resources and any relevant Section 106 receipts, in order to

help bring this scheme forward. This shows a local commitment

to the scheme and underlines the belief that investment in

Page 10: Call for Expression of Interest - Hants

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access to the Gosport Peninsula will help remove the transport

barriers to growth and will encourage investment at key sites

including the Solent Enterprise Zone, and will also help to

reduce journey times in congested urban areas.

Further opportunities will continue to be sought for additional

local contributions. The total contributions available would be

confirmed prior to submission of a Full Business Case.

What are the key financial risks? The key financial risks are predominantly those associated with

potential cost escalation during the design and implementation of

the scheme.

A full risk assessment has been undertaken for the scheme with

quantified risk cost estimates, which have been built in to the total

scheme cost estimate. Some of the key project risks which could

result in increased costs are presented in the table below.

There is a clear and effective risk management process in place,

which includes regular monitoring of the Risk Register and

implementation of appropriate mitigation measures.

Has any sensitivity analysis been

undertaken on costs?

As stated above, a full risk assessment has been undertaken and

quantified estimates for risk cost are included within the total

scheme cost estimate. The quantified risk assessment takes into

account the likely probability of risks occurring, based upon a

Risk Impact How risk will be managed/ mitigated

Land not acquired - negotiations with landowners do not reach satisfactory conclusion

Need for CPO process – delays and additional legal costs

Early dialogue with landowners to keep them informed of design process and alignment, and to discuss /agree mitigation measures that could reasonably be delivered.

Prepare CPO’s in parallel

Challenges to CPOs Delays and additional legal costs

Early communication with land owners. Ensure nil detriment scheme.

Extent / cost of environmental mitigation is greater than anticipated.

Delays scheme and increases costs

Early surveys carried out

Tender price exceeds budget, estimated cost not based on robust prices.

Increase in scheme costs. Potential delays.

Seek early expressions of interest.

Possible increase in material costs and low material availability that increases contractor costs and tender

Delays scheme and increases costs

None- outside of realistic control

Statutory undertakers – unknown services encountered and / or delays to diversions

Increases fee costs and civil works costs(contractor prologation costs) and delays programme

Trial pits to establish locations of services

Complications with construction of retaining walls on Titchfield Road.

Delays scheme and increases costs

Further investigations being undertaken.

Lack of co-ordination with other highway improvement projects (A27 dualling, St. Margarets/ Peel Common/ Newgate Lane South) causes disruption/ overlap of works.

Potential delays to start of scheme construction

Close working between project teams, regular meetings on details throughout scheme development.

Insufficient funding to cover scheme costs – LGF funding required.

Scheme can not be delivered within planned timescales.

Solent LEP bid for additional LGF funds. Business case developed to demonstrate Value for Money of the scheme.

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Monte Carlo simulation - this involves determining the impact of

the identified risks by running simulations to identify the range of

possible outcomes for a number of scenarios.

Is the proposal compatible with EU State aid

regulations?

Yes

Explain how the proposal will

provide value for money, and

what is the basis for your

assessment?

The scheme has been demonstrated to provide strong value for money

in terms of the economic return on investment. Two approaches have

been considered:

i) A traditional transport appraisal (in line with DfT’s WebTAG),

based on monetisation of transport user benefits; and

ii) A wider economic assessment, based on the business case which

has been prepared for the Solent LEP Fareham and Gosport

Infrastructure Programme.

Transport Appraisal (WebTAG)

The Sub Regional Transport Model (SRTM) covering South Hampshire

and the Isle of Wight has been used to provide traffic forecasting

information for the assessment (forecast years of 2019 and 2026). This

considers the impact of the scheme in isolation (i.e. no dependent

development).

The economic appraisal was undertaken using the DfT software TUBA,

fed by outputs from the transport models. The TUBA appraisal reported

here is based on the latest transport scheme provisions, designs and

scheme costs.

The outputs from the economic appraisal are presented in the table

below for two scenarios – the Stubbington Bypass scheme with and

without the Newgate Lane South scheme assumed in the ‘Do Minimum’.

Scenario BCR NPV (£m)

PVC (£m)

PVB (£m)

Stubbington Bypass - including Newgate Lane South in Do Minimum

2.10 33.0 29.8 62.8

Stubbington Bypass - without Newgate Lane South in Do Minimum

1.87 25.9 29.8 55.7

The enhanced BCR under scenario A demonstrates incremental

benefits of the scheme in the context of the wider transport package for

Fareham / Gosport. Based on the appraisal outputs for scenario A:

the scheme will generate a Present Value of Benefits (PVB) of £62.8m, associated with journey time savings for business users, commuters, and leisure/ other users. This also includes impacts on transport providers and impacts on wider public finances (indirect tax revenues).

The PVB compares against a Present Value of Costs (PVC) of £29.8m.

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This results in a Benefit Cost Ratio (BCR) of 2.10 (with NGLS in the ‘Do Minimum’), which represents ‘high value for money’, in accordance with DfT criteria.

Additional monetised impacts (not included in the above BCR calculation) have been derived for noise impacts (NPV -£1,082,946) and air quality impacts (NPV £4,389,567) :- the net impact being positive in terms of the BCR.

Wider benefits assessment

By helping to remove the transport barriers caused by congestion, delay

and unreliable journey times, which are symptomatic of western access

to the peninsula, the Stubbington Bypass scheme will deliver benefits

above and beyond standard transport user benefits. This includes

enabling the delivery of planned new homes, employment floorspace /

jobs, additional GVA growth and local investment as well as supporting

the re-positioning of the defence sector in the area.

The contribution of the scheme within this wider economic context is

considered in detail in the wider business case which has been prepared

for the Solent LEP Fareham and Gosport Infrastructure Programme2.

This has been prepared in accordance with based HMT Green Book

appraisal guidance and focuses on the economic impacts of the Solent

LEP infrastructure programme for the Fareham and Gosport area

(including transport and non-transport measures).

Within the business case the core assessment of benefits is based upon

an intermediate infrastructure package, excluding the Stubbington

Bypass scheme. However, additional analysis was also undertaken for a

full infrastructure package, inclusive of the Stubbington Bypass scheme.

From this, the incremental impact of the scheme (in terms of value for

money) can be determined, as demonstrated through the Benefit Cost

Ratios:

BCR

Intermediate Programme (no Stubbington Bypass)

3.6

Full Programme (with Stubbington Bypass)

3.8

The business case states that “..there is a positive investment case to be made for Stubbington Bypass if funding can be secured.”. The case is largely demonstrated around the additional acceleration of key growth sites (such as the SEZ) and agglomeration effects associated with the enhanced connectivity provided by the scheme.

The business case demonstrates that a full infrastructure package for

Fareham and Gosport, including the Stubbington Bypass scheme, would

2 Fareham and Gosport Intermediate Infrastructure Programme (BBP Regeneration, March 2015)

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be pivotal in delivering the following outputs (over and above an

assumed Reference Case, without the package):

C. 5,500 additional new homes, with approximately 1,500 in the period

to 2021;

C. 2,900 additional jobs;

C. 83,200 sq metres of additional new employment (B-class) floor

space;

Additional £180 million private sector investment;

Additional GVA of £660 million

Expected delivery start date (quarter / year) Advanced works would currently be scheduled to

commence in Q4, 2018.

Current status of the scheme (feasibility /

outline design / detailed design)

The scheme is currently progressing through detailed

design stage.

The current stage of the scheme is a culmination of a

substantial amount of technical feasibility and design work

over recent years. Planning permission was recently

granted for the scheme, representing a major milestone.

What consents are required, and are these in

place? If not, when will they be in place?

The principle consent in relation to the scheme is planning

approval. Planning permission for the Stubbington Bypass

scheme was granted on 21 October 2015.

Applications for PROW diversions would be required, and

any necessary Traffic Regulation Orders. Based on the

current programme, these would be expected to be in

place well in advance of the anticipated construction start

date (Feb 2019).

Are there any constraints and dependencies,

if so, what are these?

Key dependencies that are critical to the successful delivery of the planned programme include:

Funding allocation / approval;

Timely procurement of contractor;

Project appraisal (G3) approval by the HCC Executive Member for Economy Transport and Environment;

Acquisition of the land required;

application for PROW diversions

The scheme requires land acquisition and early negotiations / discussions have taken place with relevant landowners. At this stage, it is not known whether a CPO process will be required (although this will be advanced in a parallel with ongoing negotiations to mitigate impacts on timescales if it is required).

From an engineering perspective, the scheme is not considered to be particularly complex or unusual.

Page 14: Call for Expression of Interest - Hants

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Set out the key delivery milestones Based on the current programme (subject to funding), the key project

milestones are set out below:

Project Milestone Expected completion date

Planning Application Granted October 2015 (actual)

Detailed Design commences November 2015

Land acquisition concluded December 2017

Detailed Design complete May 2018

Tender preparation complete July 2018

Tender Process concluded October 2018

Advanced works commence November 2018

Advanced works complete January 2019

Main Construction works commence

February 2019

Construction complete Summer 2020

Hampshire County Council (HCC) has a strong track record in

delivering transport infrastructure schemes, including major schemes.

The County Council is confident that this project can be completed

within the stated timescales and milestones (assuming funding

availability). The ability of HCC to deliver effectively on time and to

budget on wider schemes linked to improving access on the Gosport

peninsula is evidenced, for instance, by the Bus Rapid Transit major

scheme, costed at £25m and successfully opened in April 2012, less

than 3.5 years after inception.

Any other information or

further comments on the

proposal not captured in

other sections of this form

(200 words)

There are significant potential adverse impacts for local employment of not

securing the LGF funding needed to deliver this scheme. Without investment

to reduce congestion and delay on the B3334 Titchfield Road and Gosport

corridor (the primary strategic access from the Solent LEZ to the west via the

A27 and Junction 9 of the M27) new build commercial units planned at the

EZ will prove very challenging to let. Existing businesses based on the

Gosport peninsula will continue to face additional costs from congestion, and

may choose to relocate out of Gosport to eliminate these accessibility

issues. This will lead to further out-commuting from the peninsula, placing

the three main access routes into and out of Gosport under even more traffic

pressures.