Minutes
Project SEMMMS A6 TO MANCHESTER AIRPORT RELIEF ROAD
Job No D128008
Date of Meeting 21/10/09
Meeting No
Page 1
of 4
Location of Meeting
Great Minster House, London
Time of Meeting
11.00am
Subject of Meeting
Business Case Submission
Persons present including representation
Mostaqu Ahmed (DfT)
Charlie Sunderland (DfT)
Nick Joyce (DfT)
Jim McMahon (SMBC)
John Gray (Cheshire East)
Neil Searle (Mott Macdonald)
Tim Baker (Scott Wilson)
John Collins (DfT) – from traffic modelling
Steve ? (DfT) – from traffic modelling
Distribution of notes to As above plus
Chris Barber (MCC)
Sue Stevenson (SMBC)
Neil Stockley (Atkins)
Hossein Farsi (Mott MacDonald)
Graham Martin (Scott Wilson)
Tony Mellor (GMTU)
s:\projects\semmms major information\15.0 meetings\15.16 business case
Date of Notes
23 October 2009
meetings\meeting notes dft 21-10-09[1].doc
Form No. Q102
24.05.00
Minutes
Project SEMMMS A6 TO MANCHESTER AIRPORT RELIEF ROAD
Job No D128008
Date of Meeting 21/10/09
Meeting No
Page 2
of 4
NOTES
ACTION
DATE
PART 1 – PFI
1.
Current Position of Scheme
1.1 Together with in house staff, the following consultants had been
appointed to develop the scheme for the business case submission
and to take the scheme forward to Planning Application stage:
Scott Wilson – Project management and design review
Atkins – Business Case and Transport Assessment
Mott MacDonald – SEMMMS 6 traffic model
GMTU – SEMMMS7 traffic model
Mouchel – Environmental work
1.2 Project Team is being lead by SMBC with Jim McMahon as project TJB
30/10/09
director. Proposed governance of project is set out in Project Initiaition
Documents. Scott Wilson to ensure these are copied to DfT (Charlie
Sunderland).
1.3 Programme is as follows:
•
Business Case final submission – by February 2010. based upon
SEMMMS 6 model.
•
Pre Planning Consultation – March 2010 at earliest, with traffic data
based on SEMMMS 7 model.
•
Planning Application – Late summer 2010.
2.
Scheme Funding
2.1 Current funding based upon contributions from DfT, AGMA (RFA and
LTP) and a contribution from the airport. SMBC has given AGMA the
anticipated spend profile.
2.2 The current programme matches the £290m anticipated spend profile.
3.
PFI
3.1 DfT requested that the team review option for PFI funding again and
include in the business case submission.
3.2 Mott MacDonald will undertake this work, following Treasury guidelines
NSearle
Qualitative Assessment
3.3 Principles of PFI – is there potential for a PFI?
s:\projects\semmms major information\15.0 meetings\15.16 business case
Date of Notes
23 October 2009
meetings\meeting notes dft 21-10-09[1].doc
Form No. Q102
24.05.00
Minutes
Project SEMMMS A6 TO MANCHESTER AIRPORT RELIEF ROAD
Job No D128008
Date of Meeting 21/10/09
Meeting No
Page 3
of 4
NOTES
ACTION
DATE
3.4 Qualitative assessment to include, inter alia, consideration of:
• the extent of a viable network;
• other capital works schemes that could be included; and
• change to current programme for PFI.
3.5 Assessment does not need to be detailed but the key issues and
features of a PFI scheme need to identified – probably over next 3 to 4
weeks.
Quantitative Assessment
3.6 Shadow Bid model to be developed. Mott MacDonald to advise on
number of credits that would be appropriate.
3.7 First draft of PFI business case to be submitted by 22/12/09. DfT can N Searle
22/12/09
provide advice and input at any stage during drafting of this works of
PFI assessment.
3.8 Mott MacDonald will also liaise with Neil Stockley of Atkins who is
preparing the business case.
3.9 Design development & land acquisition costs would need to be by
conventional funding. Otherwise, no other capital cost contribution to
be assumed.
4. Business Case
4.1 The team is currently working to the programme originally provided by
DfT, i.e. drafts by end of year and final submission at end of January.
4.2 DfT advised that there are several internal stages of approval of the
business case plus approval by PRG by Treasury. It was noted that
there was the risk of programme entry not being announced by the end
of March 2010 target.
4.3 DfT confirmed that a robust business case needed to be submitted. See
5. below regarding traffic modelling.
4.4 The three local authorities would ensure that the business case would JMcM
22/01/10
have gained executive approval prior to submission to DfT during
January 2010. This would also need to include the option for PFI where
the chief concern of the authorities would be the scheme’s affordability.
4.5 Scheme needs to consider possibility of future link to M60 and Poynton Neil
bypass but this should not form a major part of the business case. DfT Stockley/
s:\projects\semmms major information\15.0 meetings\15.16 business case
Date of Notes
23 October 2009
meetings\meeting notes dft 21-10-09[1].doc
Form No. Q102
24.05.00
Minutes
Project SEMMMS A6 TO MANCHESTER AIRPORT RELIEF ROAD
Job No D128008
Date of Meeting 21/10/09
Meeting No
Page 4
of 4
NOTES
ACTION
DATE
accepted that current scheme was the lowest cost solution but Hossein
emphasised that a clear argument needed to be presented to Farsi
demonstrate that this was the case.
5. Traffic Modelling
5.1 DfT confirmed that John Collins time would be prioritised to review the
LMVR, which was delivered on 19/10/09 and all other work associated
with the scheme’s business case.
5.2 In respect of the LMVR – John Collins will report directly back to SMBC. JC
30/10/09
This is expected in the next few days.
5.3 The age of the current traffic data is acknowledged and this would be
addressed by the SEMMMS7 model which will use data based upon
current traffic surveys. This could possibly be made available to DfT in
February/March 2010, after the submission of the business case, to
compare with SEMMMS6 data.
5.4 Current SEMMMS programme to be reviewed in respect of 5.3 above
TB
6/11/09
6. Scheme Budget for Business Case
6.1 Corderoy have been appointed to review scheme cost estimate.
6.2 Current sections of WebTAG that are draft for consultation should be Neil
used in the business case preparation. This includes guidance on Stockley
inflation – 2.7%. If different inflation proposed this needs to be
included in QRA with justification.
6.3 Land risks to be kept separate from project QRA.
6.4 Optimism bias has been reviewed in earlier assessments. Current
value at this stage is 44%. Need to justify if a different value is used.
6.5 No non-recoverable VAT as scheme is a local authority scheme, not an
HA scheme.
7
Route Protection and Land Ownership
7.1
Route is currently protected. Approximately £3m worth of land on JMcM
6/11/09
current scheme alignment is owned by HA. Regional Minister has
written to HA to advise that this should be transferred to local
authorities. SMBC to review current position
s:\projects\semmms major information\15.0 meetings\15.16 business case
Date of Notes
23 October 2009
meetings\meeting notes dft 21-10-09[1].doc
Form No. Q102
24.05.00
